Mango Markets Suffers $116M Lost Due to Manipulation

MNGO governance token exploited
Mango Markets lost an estimated amount of $116M
US SEC is continuously investigating the full story behind the market manipulation

The Securities and Exchange Commission charged Avraham Eisenberg with coordinating an attack on a crypto asset trading platform, Mango Markets, through the manipulation of the MNGO token.

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In a notice dated January 20, the SEC said that Avraham Eisenberg exploited Mango Markets’ MNGO governance token, enabling him to steal about $116 million worth of cryptocurrencies from the site. Eisenberg allegedly orchestrated a series of big MNGO transactions to artificially inflate the token’s price relative to USD Coin (USDC) before draining the assets from Mango Markets.

Eisenberg has been charged with securities law offenses related to anti-fraud and market manipulation legislation. According to the financial regulator, the agency will seek permanent injunctive relief, a conduct-based injunction, disgorgement with prejudgment interest, and civil penalties.

Crypto Assets and Cyber Unit Chief, David Hirsch, stated:

As we allege, Eisenberg engaged in a manipulative and deceptive scheme to artificially inflate the price of the MNGO token, which was purchased and sold as crypto asset security, in order to borrow and then withdraw nearly all available assets from Mango Markets, which left the platform at a deficit when the security price returned to its pre-manipulation level. As our action shows, the SEC remains committed to rooting out market manipulation, regardless of the type of security involved.

Ongoing probes are being conducted into alleged violations of other securities laws, as well as other organizations and people.

In other news, Eggland’s Best, one of the biggest egg producers in the world, made the announcement that they would soon be launching a stablecoin that will be pegged to the price of a single egg.

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José Gustavo

José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.