The alleged Mango Markets exploiter being ordered into detention is the latest update to the ongoing drama.
On January 4th, 2023, after the detention hearing was concluded, United States Magistrate Judge Bruce McGiverin issued an order of detention pending trial. The court documents reveal that the reason for such a decision was ‘By a preponderance of evidence that no condition or combination of conditions of release will reasonably assure the defendant’s appearance as required’.
According to the documents, other reasons include the fact that Avraham Eisenberg is facing a lengthy period of incarceration if convicted; him having significant family or other ties outside the US; the Mango Markets hacker having unknown or unverified background information that could complicate the ongoing legal proceedings.
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This decision means that in order to be released, Eisenberg will have to either remain in custody till the case is finished, and he is found not guilty, or a bail review process will take place.
Avraham Eisenberg was arrested on December 28th, 2022. He was charged with commodities fraud and commodities manipulation. The case against him is unique, as it is historic, since he is the first US resident facing legal consequences for malicious DeFi platforms’ manipulation.
The exploit consisted of the attacker taking advantage of the platform’s price oracle, and pocketing in around $110 million.
The alleged exploiter claimed on Twitter that the whole operation that he is charged with was nothing but ‘legal open market actions, using the protocol as designed’, and the funds he acquired was the result of ‘a highly profitable trading strategy’.
You can read more about the Mango Markets hack right here.
