Mango Markets exploiter seeks to keep disputed funds paid as ‘bug bounty’

The alleged exploiter of the decentralized concern (DeFi) protocol Mango Markets, Avraham Eisenberg, is seeking to support his stock of crypto gained from his alleged “highly profitable trading strategy.”

On Feb. 15 attorneys for Eisenberg filed an absorption successful a New York District Court to a lawsuit from Mango that asked for $47 cardinal successful damages positive involvement starting from the clip of Eisenberg’s October 2022 onslaught that drained astir $117 million from the protocol.

The lawyers argued that Eisenberg shouldn’t request to wage backmost immoderate much funds to the DeFi level owed to a colony statement helium reached with Mango DAO, arguing that the “matter was settled.”

Eisenberg’s (right) past nationalist quality was connected a podcast successful precocious October 2022, conscionable weeks aft his alleged exploit of the level Source: YouTube

A governance connection was passed by the Mango DAO pursuing the draining of its treasury that saw Eisenberg support a information ($47 million) of the pilfered funds arsenic a bug bounty on with a stipulation that Mango wouldn’t prosecute ineligible action.

“Eisenberg transferred funds totaling astir $67 cardinal to Mango Markets,” the attorneys wrote, adding:

“Weeks later, eligible Mango Markets’ members received reimbursement from the Mango Markets treasury. At that point, each progressive considered this substance closed and Mr. Eisenberg heard thing further from Mango Markets.”

Mango however, said successful its suit that the colony should beryllium voided arsenic it was made “under duress” and alleged Eisenberg “was not engaged successful lawful bargaining.”

Eisenberg’s attorneys rebuffed these claims saying the “improper three-month delay” for Mango filing its suit “undermines immoderate alleged irreparable harm” and was to “take advantage” of Eisenberg’s December 2022 arrest successful Puerto Rico by United States authorities.

Related: Alleged Mango Markets exploiter waives bail during proceeding successful national court

Eisenberg was charged by the Federal Bureau of Investigation (FBI) with commodities fraud and manipulation.

He besides faces a suit from the U.S. Commodity Futures Trading Commission (CFTC) that alleges marketplace manipulation and a suit from the Securities and Exchange Commission (SEC) for violating securities laws relating to anti-fraud and marketplace manipulation.

Eisenberg has antecedently stated his trades connected Mango were “legal unfastened marketplace actions, utilizing the protocol arsenic designed” and called his purported onslaught a “highly profitable trading strategy.”