As a seasoned researcher who has closely followed the evolution of decentralized finance platforms, I find myself both intrigued and concerned by the ongoing saga of Mango Markets. The platform, built on Solana, is currently engaged in a settlement discussion with the SEC, following a devastating security breach orchestrated by Avraham Eisenberg last year.
Mango Markets, a Solana-based DeFi platform, is under review for a potential settlement with the U.S. Securities and Exchange Commission (SEC). This comes after a significant security incident in 2022 when funds to the tune of over $110 million were stolen from the platform by Avraham Eisenberg. Since then, Eisenberg has been indicted and convicted for his actions. Currently, Mango Markets is addressing SEC accusations of breaching U.S. securities laws.
On Monday, Mango DAO initiated a vote on a proposed settlement intended to address SEC’s accusations. This settlement includes paying a fine of $223,228 to the SEC, getting rid of MNGO tokens, and seeking an exemption from listing on trading platforms. The goal is to prevent any additional lawsuits without admitting liability. With 106,717,813 votes cast, the proposal has surpassed the quorum requirement and enjoys the backing of all shareholders.
Eisenberg Seeks New Trial After Being Convicted of Mango Market Manipulation
The ongoing Securities and Exchange Commission (SEC) review of Mango Markets is an extension of previous probes by the Department of Justice and the Commodity Futures Trading Commission (CFTC). Despite these past investigations, they are not part of the current settlement agreement between the parties. Following the attack on Mango Markets, Eisenberg allegedly used a deceitful trading strategy to profit from the token and stablecoin values of Mango, which has since struggled financially.
During Eisenberg’s court case, he asserted that his actions were part of a lawful trading process. However, the court found him guilty of commodities fraud, manipulation, and wire fraud. Currently, he is imprisoned and is seeking to overturn this conviction by petitioning for a new trial through an appeal to the court.
The incident took place on October 11, 2022. During this time, Eisenberg artificially inflated Mango’s token price by an enormous 1,300% through a process known as wash trading. This inflated value allowed him to withdraw approximately $110 million in various cryptocurrencies. The Commodity Futures Trading Commission (CFTC) alleges that Eisenberg defrauded them of $65 million, but he agreed to return $67 million to gain certain legal advantages. However, the CFTC is still pursuing charges against him for market manipulation.
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2024-08-20 23:15