Eisenberg Accused of Draining $117M From Mango Labs Exchange Protocol in Complex Scheme

In October 2020, crypto trader, Eisenberg, was accused of using a complicated scheme to drain around $117 million from Mango Labs LLC’s exchange protocol. As a result, Mango Labs has sought to file a motion against Eisenberg in a New York District court, alleging that the settlement agreement was reached “under duress”, and is therefore invalid and unenforceable.[0] Furthermore, the company is asking a federal court in Manhattan to order Eisenberg to pay back the rest of the money.[1]

Eisenberg has denied the charges, claiming that he did his part and that “eligible Mango Markets’ members received reimbursement from the Mango Markets treasury”.[0] His lawyers also said that “all involved considered this matter closed and Mr. Eisenberg heard nothing further from Mango Markets” until the company sued him in January.[2]

In addition to the civil lawsuit, Eisenberg is also facing criminal charges and is being sued by the Commodity Futures Trading Commission and the Securities and Exchange Commission.[1] The case remains ongoing and the outcome is yet to be seen.

0. “Mango Market exploiter files to keep $47M bounty payment” CryptoSlate, 16 Feb. 2023, https://cryptoslate.com/mango-market-exploiter-files-to-keep-47m-bounty-payment/

1. “Accused Mango Labs Crypto Scammer Seeks to Keep Disputed Funds” BNN Bloomberg, 16 Feb. 2023, https://www.bnnbloomberg.ca/accused-mango-labs-crypto-scammer-seeks-to-keep-disputed-funds-1.1884533

2. “Mango Markets exploiter seeks to keep disputed funds paid as ‘bug bounty’” Cointelegraph, 16 Feb. 2023, https://cointelegraph.com/news/mango-markets-exploiter-seeks-to-keep-disputed-funds-paid-as-bug-bounty