• Avraham Eisenberg is charged with market manipulation of the MNGO token, Mango’s governance.
• Eisenberg was arrested in Puerto Rico in December and can now be deported to New York to face prices.
• In October 2022, he described the scheme as a “extremely worthwhile buying and selling technique”.

The USA Securities and Alternate Fee (SEC) has charged Mango Markets manipulator Avraham Eisenberg for stealing crypto belongings price $116 Million. As per the press launch, Eisenberg has allegedly been concerned with committing fraud and market manipulating the MNGO token, Mango’s governance token that was provided and offered as a safety.

Eisenberg, a U.S. citizen, was arrested in Puerto Rico in December and can now be deported to New York to face legal and civil prices. In October 2022, he admitted his actions and described the scheme as a “extremely worthwhile buying and selling technique” on Twitter. Consequently, Mango Markets had briefly been bancrupt. He additionally defended the scheme in one of many podcasts.

David Hirsch, Chief of the Crypto Belongings and Cyber Unit, has said:

As we allege, Eisenberg engaged in a manipulative and misleading scheme to artificially inflate the value of the MNGO token, which was bought and offered as a crypto asset safety, to borrow after which withdraw almost all accessible belongings from Mango Markets, which left the platform at a deficit when the safety worth returned to its pre-manipulation stage.

The information has prompted a number of responses on Twitter, with many declaring that SEC considers airdrops as gross sales.

The SEC obtained assist from the U.S. Legal professional’s Workplace for the Southern District of New York, the FBI, and the CFTC. Eisenberg is charged with flouting anti-fraud laws and market manipulation tips of securities legal guidelines.