Mango Markets Attacker Intends to Keep Disputed Funds as Bug Bounty

Avraham Eisenberg, the accused Mango Markets exploiter, wants to keep his share of the cryptocurrency earned through his purportedly “highly profitable trading strategy.” 

On February 15, Eisenberg’s attorneys submitted a motion in a New York District Court making reference to a lawsuit from Mango that seeks $47 millions in compensation plus interest beginning at the time of Eisenberg’s October attack, which drained more than $110 million.

Due to a proposed settlement which Eisenberg managed to reach with the DAO, the attorney claimed that Eisenberg shouldn’t really be required to repay any additional money to the DeFi platform and that the “matter was settled.”

After the loss of its fund, the DAO approved a governance proposal that allowed Eisenberg to hold a portion ($47 million) of the stolen cash as a bug bounty in exchange for Mango agreeing not to file a lawsuit.

The lawyers stated that “Eisenberg transferred funds totaling approximately $67 million to Mango Markets,” adding that “weeks later, eligible Mango Markets’ members received reimbursement from the Mango Markets treasury. At that point, all involved considered this matter closed and Mr. Eisenberg heard nothing further from Mango Markets.”

Mango Asks for Dismissal of Agreement

However, Mango claimed in its lawsuit that the agreement should be dismissed because Eisenberg “was not engaged in lawful bargaining” and that it was reached “under duress.”

These allegations were then rejected by Eisenberg’s lawyers, who said that the DAO’s “improper three-month delay” in bringing suit “undermines any alleged irreparable harm.” They assert that the case seeks to “take advantage” of Eisenberg’s detention by American officials in Puerto Rico in December of the last year. 

Interestingly at the time of arrest the self-proclaimed game theorist acknowledged that he was behind the attack on the Mango Market, using a “highly profitable trading strategy” that cost over $110 million in cryptocurrencies. In January of this year, the CFTC sued him after his arrest.