Mango Markets sues Avraham Eisenberg for $47M in damages plus interest

Mango Labs, the institution down the decentralized concern (DeFi) protocol Mango Markets has travel retired with its ain suit against exploiter Avraham Eisenberg.

The Jan. 25 filing successful the United States District Court for the Southern District of New York alleges Einseberg of exploiting its level for millions of dollars worthy of cryptocurrencies successful October 2022.

It asks for $47 cardinal successful damages positive involvement starting from the clip of the attack.

It besides asked the tribunal to rescind an statement made betwixt Eisenberg and Mango’s related DAO and state it to beryllium “invalid and unenforceable.”

Eisenberg (right) successful an Oct. 28, 2022 occurrence of the Unchained podcast with writer Laura Shin discussing his exploit of Mango Markets. Image: YouTube

The statement was successful narration to a governance connection submitted by Eisenberg which asked the DAO to let them to support $47 million on with a stipulation that Mango Markets wouldn’t prosecute transgression charges for the draining of its treasury.

In the latest complaint, Mango Labs alleged Eisenberg “was not engaged successful lawful bargaining,” adding:

“[Eisenberg] forced Mango DAO to participate into an unenforceable colony agreement—under duress—purporting to merchandise depositors’ claims against him and precluding them from pursuing a transgression investigation.”

On Oct. 11, 2022, an attacker drained astir $117 million from Mango Markets’ treasury by manipulating the terms oracle information of its autochthonal MNGO token, allowing them to instrumentality retired under-collateralized loans.

Afterward, Eisenberg outed himself arsenic the attacker. He claimed the exploit was a “highly profitable trading strategy” and that it was “legal unfastened marketplace actions, utilizing the protocol arsenic designed.”

On Dec. 27, Eisenberg was arrested successful Puerto Rico and charged by the Federal Bureau of Investigation (FBI) with 1 number each of commodities fraud and manipulation for his onslaught connected the platform.

Related: Mango Market exploiter brags aft rug-pulling Mango Inu ‘shitcoin’

The Commodity Futures Trading Commission (CFTC) followed up connected the FBI’s charges connected Jan. 9, pinning Eisenberg with 2 counts of marketplace manipulation.

On Jan. 20 the Securities and Exchange Commission (SEC) dealt a further stroke to Eisenberg with charges of violations relating to anti-fraud and marketplace manipulation provisions of U.S. securities laws.

Mango Labs suit claimed Eisenberg “is a notorious online personality” with “a past of attacking aggregate cryptocurrency platforms and manipulating cryptocurrency markets.”

Eisenberg has attempted to exploit different protocols, helium utilized a slew of blase shorts connected Nov. 22 attempting to exploit the DeFi protocol Aave.

Attorneys retained by Mango Labs did not instantly respond to a petition for comment. Mango Markets could not beryllium reached for comment.