Mango Markets exploiter seeks to keep disputed funds paid as ‘bug bounty’
The alleged exploiter of the decentralized finance protocol Mango Markets, Avraham Eisenberg, is seeking to keep his share of crypto gained from his so-called “highly profitable trading strategy.”
On Feb. 15, attorneys for Eisenberg filed a motion in a New York District Court objecting to a lawsuit from Mango that asks for $47 million in damages plus interest starting from the time of Eisenberg’s October attack, whidrained around $117 million from the protocol.
The lawyers argued that Eisenberg shouldn’t need to pay back any more funds to the DeFi platform due to a settlement agreement that he reached with Mango DAO, arguing that the “matter was settled.”
A governance proposal was passed by the Mango DAO following the draining of its treasury that saw Eisenberg keep a portion — $47 million — of the pilfered funds as a bug bounty along with a stipulation that Mango wouldn’t pursue legal action.
“Eisenberg transferred funds totaling approximately $67 million to Mango Markets,” the attorneys wrote, adding:
Mango, however, said in its suit that the settlement should be voided as it was made “under duress” and alleged Eisenberg “was not engaged in lawful bargaining.”
Eisenberg’s attorneys rebuffed these claims, saying the “improper three-month delay” for Mango filing its suit “undermines any alleged irreparable harm.” The lawsuit, they say, aimto “take advantage” of Eisenberg’s December arrest in Puerto Rico by United States authorities.
Related: Alleged Mango Markets exploiter waives bail during hearing in federal court
Eisenberg was charged by the Federal Bureau of Investigation with commodities fraud and manipulation.
He also faces a lawsuit from the U.S. Commodity Futures Trading Commission that alleges market
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