Feb 16, 2023
Eisenberg Seeks to Keep Crypto Gains from “Highly Profitable Trading Strategy”
Avraham Eisenberg, the alleged perpetrator of the decentralized finance protocol Mango Markets, is seeking to keep his share of crypto gained from his so-called “highly profitable trading strategy.” On Feb. 15, Eisenberg’s attorneys filed a motion in a New York District Court to dispute a lawsuit from Mango that is demanding $47 million in damages and interest, starting from the time of Eisenberg’s October attack.
The Mango DAO passed a governance proposal following the draining of its treasury that saw Eisenberg keep a portion of the funds, approximately $47 million, as a bug bounty. In addition, the agreement stipulated that Mango would not pursue legal action against Eisenberg. The attorneys argued that Eisenberg had already transferred $67 million to the Mango Markets and that the “matter was settled.”
Mango, however, said that the settlement should be voided as it was made “under duress” and alleged Eisenberg “was not engaged in lawful bargaining.” Eisenberg’s attorneys rebuffed these claims, saying the “improper three-month delay” for Mango filing its suit “undermines any alleged irreparable harm.”
Eisenberg was arrested in Puerto Rico by United States authorities in December and is facing charges from the Federal Bureau of Investigation for commodities fraud and manipulation. The U.S. Commodity Futures Trading Commission has also filed a lawsuit against him, alleging market manipulation, as well as a suit from the Securities and Exchange Commission for violating securities laws relating to anti-fraud and market manipulation.
Eisenberg has maintained that his trades on Mango were “legal open market actions, using the protocol as designed.” He has also stated that his purported attack was a “highly profitable trading strategy.”
The incident has highlighted the need for organizations to use NFTs and other web3 technologies to promote their products and services. NFT marketing agencies can help organizations take advantage of the growing crypto space by creating and selling NFTs, as well as utilizing Twitter NFT marketing to reach new audiences. Web3 agencies can also help organizations build their presence on the web3 space and offer advice on how to best leverage the technology to promote their products and services.
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