The crypto dealer behind the $110 million exploit of the Solana (SOL)-based decentralized finance (DeFi) buying and selling platform Mango Markets is now beneath the custody of US authorities.
A court docket doc submitted by U.S. Legal professional Damian Williams to Justice of the Peace Choose Katharine Parker of the Southern District of New York says that Avraham Eisenberg was arrested in Puerto Rico on Monday, December twenty sixth.
“Final night time, the defendant was arrested within the District of Puerto Rico and will probably be offered later at the moment.”
Eisenberg, who runs a buying and selling agency, admitted in October that he’s the mind behind the scheme that left Mango Markets bancrupt and customers unable to entry their funds.
The arrest comes after he’s charged with commodities fraud and manipulation.
In his deposition, FBI Particular Agent Brandon Racz says Eisenberg deliberately and artificially manipulated the value of perpetual futures contracts on Mango Markets permitting the self-described digital artwork supplier to borrow and withdraw massive quantities of crypto property from the platform.
“Whereas Eisenberg presupposed to be borrowing the cryptocurrency, he appeared to don’t have any intention of truly repaying these loans. Following the withdrawals described above, Solana Pockets-1, the Change-1 Account, and the Change-2 Account ceased buying MNGO and started to promote MNGO for USDC.”
Racz says Eisenberg is conscious of legal guidelines prohibiting market manipulation and even tried to evade arrest when he flew from the US to Israel a day after committing the scheme.
“Based mostly on the timing of the flight, the journey seems to have been an effort to keep away from apprehension by regulation enforcement within the speedy aftermath of the Market Manipulation Scheme.”
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