• The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against crypto trader Avraham Eisenberg for carrying out a „manipulative and deceptive scheme“ in October last year to pump up the price of swaps the decentralized digital-asset exchange Mango Markets.
• The exploit led to roughly $114 million lost from the decentralized digital-asset exchange trading platform.
•Eisenberg was arrested in Puerto Rico last month and charged with fraud by prosecutors in New York over the Mango Market attack.
The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against crypto trader Avraham Eisenberg for carrying out a “manipulative and deceptive scheme” in October last year on the decentralized digital-asset exchange platform Mango Markets. The attack led to the loss of roughly $114 million from the platform.
The attack, which was just one of many dApps hacked and exploited last year, was a remarkable one. It began with Eisenberg manipulating the price of swaps on Mango Markets by culminating in the misappropriation of funds. After Eisenberg had almost walked away with $50 million worth of digital assets, he defended his actions as legal in the fallout of the incident.
However, the US CFTC regulators are now taking up the matter and Eisenberg is likely to face a hearing in court and punishment against his criminal charges. The details of the filed lawsuit are yet to be revealed, but it’s clear that the US CFTC is serious about bringing those responsible for the attack to justice.
The attack on Mango Markets sent shockwaves through the crypto community and showed just how vulnerable decentralized exchanges can be. The attack also highlighted the importance of proper security and risk management measures, as well as the need for users to be aware of potential risks when trading on such platforms.
The US CFTC’s lawsuit against Eisenberg is just one example of how seriously the US is taking cybercrime and how important it is for crypto exchanges to remain vigilant and secure. It remains to be seen how the case against Eisenberg develops, but it’s clear that the US is determined to hold those responsible for cyber attacks accountable.