The Court Trial of Avraham Eisenberg Delayed to April 2024
The court trial of Avraham Eisenberg, the hacker responsible for the $114 million exploit of decentralized exchange Mango Markets, has been postponed to April 2024. This decision was made after Eisenberg’s lawyers argued that various factors had hindered his preparation for the trial. The motion for continuance was granted by US District Court Judge Arun Subramanian.
The Multi-Million Dollar Mango Markets Exploit: Justice Delayed?
In October 2022, Mango Markets DEX experienced one of the biggest crypto hacks, with approximately $114 million stolen due to a vulnerability in the protocol smart contract. The hacker, later identified as Avraham Eisenberg, opened two accounts on Mango Markets and funded them with $5 million worth of USDC each. Eisenberg then used third-party exchanges to place large orders for the native token MNGO, causing a significant price increase. This allowed him to obtain massive loans from Mango Markets and transfer them to other wallets on different platforms.
In December 2022, Eisenberg was arrested in Puerto Rico on charges of fraud and market manipulation. However, his court trial, originally scheduled for December 2023, has been delayed due to the voluminous discovery provided by the US prosecutors. The new date for the trial is set for April 2024.
Eisenberg Faces Multiple Battles
After the exploit, Mango Markets reached an agreement with Eisenberg in which he returned $67 million of the stolen funds but was allowed to keep $47 million. However, Mango Markets filed a lawsuit claiming that the agreement was made under duress and is seeking to recover the remaining $47 million.
In addition to this lawsuit, both the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have filed separate lawsuits against Eisenberg, accusing him of market price manipulation for MNGO.
Hot Take: Justice Delayed Raises Concerns in the Crypto Community
The postponement of Avraham Eisenberg’s court trial to April 2024 has raised concerns in the crypto community. The delay allows more time for Eisenberg’s lawyers to analyze the “voluminous discovery” provided by the US prosecutors, potentially prolonging the resolution of this high-profile case. Meanwhile, Mango Markets continues to pursue legal action to recover the remaining stolen funds. As the crypto space grapples with security vulnerabilities and regulatory challenges, the outcome of this trial will have significant implications for the industry’s efforts to combat hacking and market manipulation. The community eagerly awaits a fair and just resolution to this multi-million dollar exploit.
By
By
By
By
By