On Monday, the U.S. Commodity Futures Trading Commission (CFTC) filed charges of manipulation against Avraham Eisenberg, the exploiter of Mango Markets. These charges come just a few short weeks after Eisenberg, aka Mango Avi, was arrested by the United States Department of Justice (DOJ) on charges that were particularly similar.
According to a lawsuit filed on Monday, Eisenberg engaged in “manipulation of a swap” for his part in abusing Mango Markets in October and allegedly used a deceitful method to influence the price of the MNGO token through fraudulent swaps. After a trader used numerous accounts to buy, sell, and hedge the price of the MNGO token, more than $100 million in cryptocurrency was stolen from the decentralized exchange.
According to the recent complaint, CFTC’s exact words were:
A manipulative and deceptive scheme to artificially inflate the price of swaps offered by Mango Markets.
Read More: What Are Music NFTs? How Are They Changing Music Industry?
Eisenberg had claimed that he and his team had orchestrated an extremely profitable trading strategy and later would give some of the money back to Mango. However, his tweets indicated that he felt the activities were within the law and completely legal. But, around two months later, he was detained by the Justice Department on allegations of market manipulation.
Eisenberg specifically managed to increase the value of the native MNGO crypto token relative to the stablecoin USDC by purchasing the small-cap token in bulk. As a result, its price increased by 1,300% in October. Eisenberg and his crew were subsequently able to utilize the inflated MNGO as collateral for additional USDC loans.
In the wake of FTX’s bankruptcy, the CFTC is coming under increasing amounts of scrutiny. The government organization and its respective commissioners were on board with FTX’s efforts to lobby Congress for a measure that would expand the body’s regulatory authority over the cryptocurrency market prior to the exchange’s demise.
Also Read: What’s Pushing Dogecoin (DOGE) Price To Rally 10% Suddenly?
Binance said it will compensate users affected by Friday night’s massive crypto selloff that caused…
Fundstrat's analyst Mark Newton is doubling down on their Ethereum prediction of a rally above…
Raoul Pal, the founder of Real Vision, has reaffirmed his bullish stance on the crypto…
XRP ETF issuers have filed amendments for their respective registration statements, providing optimism even as…
Today's crypto market crash triggered major congestion at some of the top centralized exchanges like…
The crypto market has witnessed the biggest single-day crash in history, with more than $19…