Alleged Crypto Trader Arrested in Puerto Rico

• The crypto trader charged with defrauding Mango Markets of $110 million has been arrested.
• Avraham Eisenberg manipulated the price of Mango Markets’ native token, MNGO

The cryptocurrency trader accused of fraud in a $110 million allegation scam at Mango Markets has been detained in Puerto Rico. The scammer behind the exploitation of the decentralized trading platform is also charged with market manipulation and fraud by the prosecutors in New York.

Avraham Eisenberg allegedly manipulated the price of perpetual contracts for Mango Markets’ native token MNGO, according to the unsealed complaint. He sold significant numbers of MNGO perpetual contracts to himself, effectively increasing the price of those contracts by 1,300% in less than an hour.

Eisenberg’s Mango Markets Exploitation

The complaint discloses that Eisenberg utilized his swaps, which had gained in value, to borrow and subsequently withdraw approximately $110 million in various cryptocurrencies obtained from other investors’ deposits on the exchange.

The complaint conveys:

Due to Eisenberg’s withdrawals, other investors with deposits on Mango Markets lost much, or all, of those deposits.

Later, Eisenberg reportedly consented to pay Mango $67 million back, according to the lawsuit.

As Eisenberg stated on Twitter, these actions are viewed by violators and other ardent cryptocurrency enthusiasts as “a profitable trading strategy.” Due to this, industry participants are requesting more regulatory clarity to outlaw the practice, which runs the risk of further undermining investor confidence as the blockchain industry struggles to recover from a sharp market decline.

Furtherly, Eisenberg was accused of manipulating and defrauding the commodities market by the US Attorney’s Office in Manhattan. Later on Tuesday, Eisenberg was scheduled to appear in court. As per the court documents, he did not have counsel.