Indeed, the DOJ charged and arrested Eisenberg for “market manipulation offenses”, per an official statement from U.S. prosecutors on Tuesday. Eisenberg also stands accused of commodities fraud and commodities manipulation, as revealed by a second filing.

Mango Markets was exploited for around $110 million in cryptocurrencies on October 11, 2022. The hacker leveraged a loophole in Mango’s price oracle to trigger massive withdrawals from the DEX. The DOJ’s indictment said Eisenberg and his team generated illicit wealth by trading MNGO perpetual tokens between several counts.

According to the court filing, the hacker group then manipulated Mango’s token price and created an artificial asset price pump by purchasing MNGO in vast amounts. Eisenberg allegedly leveraged the assets as collateral to borrow a myriad of digital currencies.

Afterward, Eisenberg drained liquidity from the DEX and withdrew $110 million in several cryptos. The trader claimed the process aligned with “legal open market actions” and the exploit was the consequence of Mango Markets’ lack of anticipation.Mango offered Eisenberg and his team $47 million as a bug bounty. In exchange, the platform asked the hackers to return $67 million in tokens.（BY NAGA AVAN-NOMAYO）