Key takeaways:
- Avraham Eisenberg, the Mango Markets exploiter, has received a detention warrant.
- Before the trial was over, a United States Magistrate Judge ruled that the Mango Markets exploiter needed to be detained.
In a recent twist in the Mango Markets exploitation story, the infamous Avraham Eisenberg, who is allegedly a Mango Markets exploiter, has received a detention order from the US District Court of Puerto Rico.
A detainment testimony resulted in the judgement, which stated that the defendant must be detained pending trial because the Government has demonstrated: “by a preponderance of the evidence that no condition or combination of conditions of release will reasonably assure the defendant’s appearance as required.“
The court also listed other justifications in addition to this. This includes the possibility of a lengthy prison sentence for Eisenberg in the event of a conviction, the fact that he has strong familial or other ties to countries other than the United States, and the fact that his past is unknown.
Eisenberg was detained last week and ticketed with commodities fraud and deception for his involvement in the $110 million Mango Markets price manipulation attack in October of last year. At the time, Eisenberg claimed the intrusion was legal and carried out in the mutual benefit of the depositors, quoting “bad debt” from Mango Markets’ having to bail out Solend in June as justification.
He claimed that he was acting in accordance with the protocol exactly as it was intended and that the action was just part of a very successful trading plan.
The decision was also attributed to Eisenberg’s possible lengthy prison sentence, should he be found guilty, and his extensive connections abroad. Eisenberg’s “lengthy time of incarceration if convicted” and his ambiguous and unreliable background information were also mentioned in the documents as additional signs that he posed a run away risk.
Investigators claim that he also engaged in more deceptive and manipulative activities that finally resulted in the unauthorised withdrawal of $110 million from consumers’ accounts.
As the DEX attempted to negotiate away the severe effects of his manoeuvres, his activities led to Mango’s collapse.
Eisenberg submitted the FortressUSD (FUSD) stablecoin idea to the FortressDAO DAO without revealing that he was going to be project’s only controller and owner. Being the Chief Technical Officer of the DAO at the time, he turned the money when it flowed into FUSD and made off with the entire treasury.
The crypto business is still recuperating from the damage FTX caused, and many prominent figures and firms are now subject to tighter investigations and charges to maintain the credibility of the sector. Cases like mango marketplaces serve as evidence that authorities are making every effort to uphold the law.
