Mango Markets exploiter to remain in detention until trial

Mango Markets exploiter to remain in detention until trial

05.01.2023 13:06 (Updated 05.01.2023 13:01)
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by Sviatoslav Pinchuk
2 min read

The United States District Court for the District of Puerto Rico could find no grounds to release Avraham Eisenberg from custody before trial. Quite the contrary.

Avraham was apprehended by Puerto Rico police on December 28 and charged with market manipulation and fraud in connection with the October 11 Mango Markets exploit.

Related: Mango Markets Drained of $100 Million in Hacker’s Attack

The attacker temporarily increased the value of Mango’s collateral and then loaned assets, including USDC, BTC, and SOL, causing the platform to lose liquidity and leaving it with $100 million in debt.

Related: Mango Markets exploiter arrested

Avharam confessed to the Mango Markets exploit on October 15, yet in his view, it was an act of a highly profitable trading strategy:

Statement on recent events: I was involved with a team that operated a highly profitable trading strategy last week.
I believe all of our actions were legal open market actions, using the protocol as designed, even if the development team did not fully anticipate all the consequences of setting parameters the way they are.

On January 4, United States Magistrate Judge Bruce J. McGiverin ruled that Avraham Eisenberg should remain in detention, stressing several reasons behind this decision. The court has determined there are no conditions of release that would reasonably ensure the appearance of Eisenberg in court. The court also cited other reasons for this determination, including the potential for a lengthy period of incarceration if Eisenberg is convicted, significant family or other ties outside of the United States, and unverified background information.

McGiverin then added:

The charged offense involves alleged appropriation of tens of millions of dollars of crypto currency, of which up to $40 million remain unaccounted for, giving the defendant, when combined with his duo citizenship and ties to a foreigncountry, the means and motivation to flee.

Author

  • Man who simply bought some BTC for domestic needs in 2014 and then forgot about it till 2017. The dude who got Ethereum in 2017 by misclick and sold it in 2018 "just to try". Lost 1 Florida house in XEM in 2018, Sviatoslav finally decided to trade reasonably and now he is one of the most analytical and data-driven trader in Crypto Industry. Has Bachelor Degree of Chinese Interpreter and deep practical experience in competitive niches SEO.

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