Mango Labs Sues Avraham Eisenberg to Recover $47 Million

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More trouble is brewing for Avraham Eisenberg as Mango Labs says it will sue to get back its remaining $47 million in a move criticized by the crypto community

The “profitable trading strategy” of exploiter Avraham Eisenberg has invited yet more trouble as Mango Labs sues the trader to get the remaining tokens back. Mango Markets has been making headlines since Oct., when it lost $114 million in a DeFi exploit.

Eisenberg, revealed on Twitter that his actions were “legal open market actions.” a couple of days after the incident occurred. He also mentioned that he was willing to enter a settlement so that users of the platform could access their deposits.

The Mango Market community later voted to allow Eisenberg to keep $47 million as a bounty while he returned the remaining $67 million. But, according to a recent court filing, Mango Labs sued Avraham Eisenberg for unlawfully retaining $47 million.

Mango Labs Trying to Win by Hurting Others?

The court document alleges that Avraham Eisenberg “forced Mango DAO to enter into an unenforceable settlement agreement – under duress – purporting to release depositors’ claims against him and precluding them from pursuing a criminal investigation.”

With this legal action, Mango Labs aims to recover all the tokens, including the $47 million bounty. They believe that the Mango DAO voted for Eisenberg’s proposal because they “had no choice.”

The Mango Markets community has criticized the actions on Discord. The disappointed community called the team “people with no honor.” and said, “hurting other people won’t make the token price go up.” 

Source: A screenshot from Discord chat

BeInCrypto has reached out to the Mango Labs team, but it is yet to hear back.

Avraham Eisenberg in Deep Legal Trouble

The United States Department of Justice arrested Avraham Eisenberg in Puerto Rico on Dec. 2022 for fraud and manipulation. Later, the judge denied him bail and deemed him “a flight risk.”

Last Saturday, the Securities and Exchange Commission (SEC) charged Eisenberg for securities manipulation to steal $116 million. The Federal Bureau of Investigation (FBI) charged him with commodities fraud and manipulation. The Commodities Future Trading Commission (CFTC) accused him of violating the country’s commodities regulations earlier.

The community questions the legal charges against Eisenberg while the disgraced FTX founder, Sam Bankman-Fried, is out on bail.

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Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.





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