Mango Markets Exploiter Eisenberg Arrested in Puerto Rico

Date 12/03/2023

The investor drained $110 million in cryptocurrencies from the platform.

Avraham Eisenberg, the crypto investor whose “highly profitable trading strategy” drained DeFi trading platform Mango Markets of crypto worth $110 million, was arrested Monday in Puerto Rico, court documents said. The self-described game theorist admitted his role in draining Mango Markets’ treasury shortly after the incident in mid-October, and may now be the first U.S. resident to face charges for his role in manipulating a decentralized-finance trading platform.

Eisenberg faces charges of commodities fraud and commodities manipulation, according to a filing unsealed Tuesday. The charges could see punishments ranging from fines to prison time. A deposition signed by FBI Special Agent Brandon Racz alleges Eisenberg “willfully and knowingly” manipulated the sale of a commodity – namely futures contracts on Mango Markets. “Eisenberg engaged in a scheme involving the intentional and artificial manipulation of the price of perpetual futures contracts on a cryptocurrency exchange called Mango Markets, and other manipulative and deceptive devices and contrivances.”