Mango Markets Hack: Parent Company Files Lawsuit Against Perpetrator
Mango Markets is a DeFi platform based in Solana that trades digital assets for spot margin and trading perpetual futures.
It was the target of an exploit hack in October 2022. By manipulating the DeFi protocol’s collateral, the attacker was able to steal more than $100 million from it and obtain a significant amount of loans from the Mango Treasury. The Mango Treasury suffered a substantial loss of money as a result.
Here’s a new update on the Mango Markets hack.
Mango out to sue
Mango Labs LLC has filed a lawsuit against the trader who reportedly made $114 million in 20 minutes by fraudulently manipulating the price of its cryptocurrency tokens on its exchange in October. Mango Labs claimed in its federal action, filed on January 25, that the hacker, Avraham Eisenberg, has consented to repay $67 million of the illegally obtained assets. However, Mango Labs now demands the remaining funds as well.
In just 20 minutes, Eisenberg was able to drive the price of the swaps up by 1300% and profit. As a result, Mango Markets was forced to suspend operations the day after the incident, and the price of MNGO tokens fell to just 2 cents.
SEC and CFTC also suing Eisenberg
The SEC claimed in the Complaint, filed in the Southern District of New York, that the individual purchased a significant volume of purported “perpetual futures” contracts linked to an exchange’s native (governance) token.
The token’s value increased by almost 2,200 percent as a result of his subsequent purchases and sales between two accounts, according to the SEC, while the value of the futures contracts increased by 1,300 percent.
The lawsuit is now being heard in the United States District Court for the Southern District of New York (Manhattan), and Eisenberg has yet to find an attorney.
Mango Markets’s price today is US$0.02001, with a trading volume of $23,028. MNGO has a circulating supply of 1 B MNGO and a max supply of 5 B MNGO.
There has suddenly been a surge in lawsuits in the crypto industry, especially ones that involve the SEC. The outcome of these lawsuits is highly anticipated by all to set up ground rules for the regulations in the sector.