Mango Markets, a decentralized finance (DeFi) platform built on Solana, is currently evaluating a proposed settlement with the U.S. Securities and Exchange Commission (SEC). This follows a major security breach in 2022 when Avraham Eisenberg drained over $110 million from the platform. Eisenberg has since been charged and found guilty of his actions. Mango Markets is currently responding to SEC allegations of violations of securities laws in the United States of America.
On Monday, Mango DAO started voting on a proposed settlement aimed at responding to the SEC’s allegations. The proposal entails making a payment of $223,228 as a fine to the SEC, disposing of MNGO tokens, and pursuing an exemption from trading platform listing. This settlement seeks to prevent any further lawsuits without any form of acknowledgment of liability. The proposal has garnered 106,717,813 votes to pass the quorum requirement and has the full support of the shareholders.
Eisenberg Seeks New Trial After Being Convicted of Mango Market Manipulation
The investigation from the SEC is a continuation of an examination of Mango Markets, which experienced investigations from the Department of Justice and the Commodity Futures Trading Commission (CFTC). However, these investigations are not included in the current settlement proposal by the two parties. It has, however, performed poorly since the attack, where Eisenberg employed a manipulative trading model to capitalize on the token and stablecoin value of Mango.
During the trial of Eisenberg, he said that what he did was a legal trading practice, but the court charged him with commodities fraud, manipulation, and wire fraud. He is in jail at the moment and wants the conviction overturned by appealing to the court for a new trial.
The attack occurred on October 11, 2022, and saw Eisenberg pump up the price of Mango’s token by 1,300% through wash trading. He used this inflated value to withdraw $110 million in various types of cryptocurrencies. While the CFTC claims that Eisenberg defrauded him of $65 million, he agreed to return $67 million to receive legal benefits, but the CFTC continues to charge him with market manipulation.
