CFTC Sues Trader for $114M Crypto Swap Scam

CFTC Sues Traders In Crypto Swap Scam

January 10, 2023 Story: Divya Sinha

The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Avraham Eisenberg, a crypto trader, for market manipulation in the Mango exploit.

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The trader is accused of stealing $114 million by fraudulently manipulating the price of swap contracts.

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In October, Eisenberg carried out a "manipulative and deceptive scheme" to inflate the prices of swaps offered by Mango Markets.

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Eisenberg was arrested last month and charged with fraud by New York prosecutors.

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He allegedly used two Mango Markets accounts under his control to manipulate the price of perpetual swaps, driving them up 1,300% in minutes.

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He used the swaps as collateral to borrow and withdraw about $114 million worth of cryptocurrencies deposited on exchanges by other investors.

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It was one of several hacks to hit the decentralized financial economy over the past year, leading to the runaway of $2 trillion in digital assets.

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