SEC Charges Mango Markets Attacker, Claims MNGO Is “Security”

After the CFTC, another US financial regulator, the SEC, filed an indictment accusing the Mango Markets attacker of causing $114 million in damages.

SEC Charges Mango Markets Attacker, Claims MNGO Is “Security”

On January 21, the U.S. Securities and Exchange Commission (SEC) indicted Avraham Eisenberg for orchestrating the October 2022 attack on the DeFi protocol Mango Markets. resulting in $114 million in damage.

The SEC claims Eisenberg conducted a conspiracy to manipulate the value of MNGO, Mango Markets’ private token. After pushing the price of MNGO up dizzyingly high, he used this new asset to increase in value to borrow a series of other assets on Mango and withdraw them all, which means taking away all the liquidity of the transaction. awake.

In the indictment, the SEC also claimed that MNGO was an unregistered security with the agency. The Securities and Exchange Commission said that according to its Howey Test, the MNGO, although referred to as the “governance token” by Mango Markets, is marketed and offered for sale as a crypto-security. Token holders are also claimed to have “participated in the general business” and expect “to profit from this investment” – factors sufficient to consider MNGOs a security.

The SEC stated that the prosecution of the Mango Markets attacker demonstrates its determination to purge any form of manipulation, whether in traditional assets or the crypto sector.

Previously, as reported by Kyptos, Avraham Eisenberg was arrested by order of the US Department of Justice in Puerto Rico at the end of December 2022, and was later arrested by this agency and the Futures Trading Commission (CFTC). ) charged, nor granted bail.

Going back to the hack last October, Avraham Eisenberg then claimed to have implemented “a highly profitable trading strategy” and said there was no fault of still using Mango Markets as intended. its. The attacker then reconciled with the DeFi protocol on Solana, accepting back more than $70 million in other governance tokens, and was given $40 million in stablecoins by the project as a “reward.”

Avraham Eisenberg then tried to attack major DeFi projects like Ethereum’s Aave – Curve in November 2022, but failed.

Synthetic Kyptos

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img