Crypto user behind $116m Mango Markets exploit waives right to bail

Attorneys assigned to the crypto user suspected of orchestrating a $116-million heist from decentralized exchange Mango Markets have conceded their client should remain detained during court proceedings for commodities fraud, commodities market manipulation, and wire fraud.

Reports from social media users on February 2 indicate that Avraham Eisenberg’s legal team gave up his right to bail at a hearing in the U.S. District Court for the Southern District of New York, headed by Federal Judge Richard Betman. In addition, Betman set another court date for February 14, and Eisenberg may be detained until Valentine’s Day during this period.

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In October 2022, Eisenberg was accused of carrying out a large-scale Mango Markets exploit that resulted in the extraction of close to $116 million USDC (USD Coin), mSOL (Marinade Staked SOL) worth around $27 million, and an additional $ 24 million of SOL and 15 million MNGO. Afterward, the platform reported that $67 million worth of funds had been returned after the heist.

The crypto user proclaimed that his moves were within the law as part of a highly profitable investment strategy. However, many U.S. regulatory agencies saw things differently and charged him with fraud and illicit market manipulation in December and January, respectively. The Securities Exchange Commission, and the Commodity Futures Trading Commission, amongst others, all participated in this investigation to bring justice against him.

Eisenberg was apprehended in Puerto Rico in December last year due to a criminal complaint. Subsequently, after an indictment was filed on January 9 this year, it came to light that he had deceitfully acquired roughly $110 million worth of cryptocurrency from Mango Markets and its customers by manipulating specific perpetual futures contracts’ prices.

On February 2, Eisenberg entered the Southern District of New York court after being transferred from Puerto Rico through Oklahoma. Since his arrest, he has not been active on social media platforms.

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