{"id":72315,"date":"2023-01-10T12:29:42","date_gmt":"2023-01-10T10:29:42","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=72315"},"modified":"2025-09-08T14:23:42","modified_gmt":"2025-09-08T11:23:42","slug":"cftc-files-suit-against-participant-in-mango-markets-defi-attack","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/cftc-files-suit-against-participant-in-mango-markets-defi-attack\/","title":{"rendered":"CFTC files suit against participant in Mango Markets DeFi attack"},"content":{"rendered":"<p>The US Commodity Futures Trading Commission (CFTC) has charged Avraham Eisenberg with fraud and market manipulation to illicitly obtain <a href=\"https:\/\/u1f987.com\/en\/news\/hacker-stole-more-than-100-million-from-mango-markets-defi-platform\">more than $110 million<\/a> as a result of the attack on the Mango Markets DeFi platform.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">NEWS: Today, the CFTC charged Avraham Eisenberg with a manipulative and deceptive scheme to misappropriate more than $110 million from Mango Markets, a digital asset exchange. Read the details: <a href=\"https:\/\/t.co\/Rj5FKu5hgn\">https:\/\/t.co\/Rj5FKu5hgn<\/a><\/p>\n<p>\u2014 CFTC (@CFTC) <a href=\"https:\/\/twitter.com\/CFTC\/status\/1612600848751726592?ref_src=twsrc%5Etfw\">January 10, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The regulator filed a civil complaint in the Southern District of New York.<\/p>\n<p>The CFTC alleges that to execute his scheme Eisenberg created two anonymous accounts on Mango Markets. He used the accounts to open two large leveraged positions in a swap contract, the value of which is based on the ratio of the price of the platform\u2019s native token MNGO and USDC.<\/p>\n<p>He then artificially \u201cpumped\u201d the Mango Markets token price. To do this, he bought a \u201csignificant amount\u201d of the asset on three exchanges. The venues supplied data for the price oracles used by the DeFi platform to determine the value of the swap positions.<\/p>\n<p>As a result of Eisenberg&#8217;s manipulations, the price of MNGO surged more than thirteenfold within half an hour. Using the inflated value of his swaps as collateral, he borrowed against them and withdrew digital assets worth more than $110 million.<\/p>\n<p>Subsequently Eisenberg returned to the platform <a href=\"https:\/\/u1f987.com\/en\/news\/mango-markets-community-approves-47-million-deal-with-hacker\">approximately $67 million<\/a> of the misappropriated funds, in an attempt to avoid accountability. However, the regulator noted, digital assets worth about $47 million he kept for himself.<\/p>\n<p>In the complaint, the Commission sought, among other remedies, civil penalties, disgorgement of ill-gotten gains, and the recovery of litigation costs.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis is the CFTC\u2019s first enforcement action involving a fraudulent and manipulative scheme on a DeFi platform. And the first related to what is sometimes called \u2018oracle manipulation\u2019,\u201d the statement said.<\/p>\n<\/blockquote>\n<p>In December the U.S. Department of Justice <a href=\"https:\/\/u1f987.com\/en\/news\/puerto-rico-arrest-of-mango-markets-attacker\">arrested Eisenberg<\/a> in Puerto Rico. Prosecutors charged him with commodities fraud and price manipulation.<\/p>\n<p>According to a statement by CFTC Commissioner Kristin Johnson, the investigation into the defendant\u2019s actions is being led by the U.S. Securities and Exchange Commission.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"en\">Today <a href=\"https:\/\/twitter.com\/CFTCjohnson?ref_src=twsrc%5Etfw\">@CFTCjohnson<\/a> released a statement regarding the CFTC action against a market manipulation scheme in the digital assets markets. <a href=\"https:\/\/t.co\/oArsnrc3ME\">https:\/\/t.co\/oArsnrc3ME<\/a><\/p>\n<p>\u2014 CFTC (@CFTC) <a href=\"https:\/\/twitter.com\/CFTC\/status\/1612601871826288641?ref_src=twsrc%5Etfw\">January 10, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Beosin specialists estimated that in 2022 the <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-web3\">Web3<\/a> industry suffered about $3.6 billion in damages from 167 attacks, Beosin researchers calculated.<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 crypto news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Commodity Futures Trading Commission (CFTC) charged Avraham Eisenberg with fraud and market manipulation to illicitly obtain more than $110 million from the Mango Markets DeFi platform in connection with the attack.<\/p>\n","protected":false},"author":1,"featured_media":72316,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[879,1162],"class_list":["post-72315","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cftc","tag-court-cases"],"aioseo_notices":[],"amp_enabled":true,"views":"31","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=72315"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72315\/revisions"}],"predecessor-version":[{"id":72317,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72315\/revisions\/72317"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/72316"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=72315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=72315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=72315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}