Mango Markets exploiter seeks to keep disputed funds paid as ‘bug bounty’

The alleged exploiter of the Mango Markets decentralized finance protocol, Abraham Eisenberg, is looking to keep his share of the cryptocurrency earned through his so-called “high-yield trading strategy.”

February 15 Eisenberg’s lawyers filed A New York District Court motion opposing Mango’s lawsuit seeking $47 million in damages plus interest since the October attack on Eisenberg removed about $117 million from the record.

Lawyers argued that Eisenberg no longer needed to return the funds to the DeFi platform due to the settlement agreement he made with Mango DAO, arguing that “the issue has been resolved.”

Eisenberg’s last public appearance (right) was on a podcast in late October, just weeks after his alleged use of the platform. Source: YouTube

The management offer was accepted by Mango DAO after emptying its treasury, under which Eisenberg left a portion of the $47 million in stolen funds as a reward for finding errors, along with the stipulation that Mango would not sue.

“Eisenberg transferred funds totaling approximately $67 million to Mango Markets,” the lawyers wrote, adding:

“A few weeks later, eligible Mango Markets participants received a refund from the Mango Markets treasury. At this point, all participants considered this matter closed, and Mr. Eisenberg heard nothing more from Mango Markets.”

However, Mango said in its lawsuit that the settlement should be annulled because it was entered into “under duress” and argued that Eisenberg “did not participate in legitimate negotiations.”

Eisenberg’s lawyers dismissed the claims, saying that the “wrongful three-month delay” in filing Mango’s lawsuit “undermines any alleged irreparable damage.” According to them, the lawsuit is aimed at “taking advantage” of the December arrest of Eisenberg in Puerto Rico by the United States authorities.

Alleged exploiter Mango Markets waives bail during federal court hearing

The Federal Bureau of Investigation accused Eisenberg of fraud and manipulation of goods.

He also faces a lawsuit from the US Commodity Futures Trading Commission alleging market manipulation and a lawsuit from the Securities and Exchange Commission for violating securities laws relating to anti-fraud and market manipulation.

Eisenberg had previously stated that his Mango trades were “legitimate open market activities using the protocol as intended” and called his alleged attack a “high-yield trading strategy.”

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