Avraham Eisenberg has become the first U.S. resident to face charges for manipulating and draining $110 million from a DeFi protocol.
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Eisenberg was arrested on Monday, December 26. According to a criminal complaint unsealed on Tuesday, the defendant allegedly increased the price of the swaps by 1,300% before using the inflated swaps to borrow and withdraw the assets within 20 minutes. The complaint alleges that the defendant “willfully and knowingly” manipulated the sale of a commodity – specifically, futures contracts on the DeFi protocol.
A deposition signed by FBI Special Agent Brandon Racz states that Eisenberg “engaged in a scheme involving the intentional and artificial manipulation of the price of perpetual futures contracts on a cryptocurrency exchange called Mango Markets, and other manipulative and deceptive devices and contrivances.
However, Racz noted that Eisenberg may have been aware that his actions were illegal as he left the U.S. for Israel within 24 hours after he exploited the exchange. According to the FBI agent, the Mango Markets exploiter quickly left the U.S. to avoid apprehension.to exploit. In November, the trader went after a sophisticated loophole on the DeFi platform Aave using a series of short attacks. However, the attempt failed, leading to a significant loss for the exploiter.
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