Mango Markets exploiter denied bail

Avraham Eisenberg, the individual behind the $110 million exploit on Solana-based platform Mango Markets (MNGO/USD), has been denied bail and ordered to remain in custody pending his trial.

According to court documents released on Wednesday, Puerto Rico District Court Judge Bruce McGiven noted that Eisenberg would remain in jail as the prosecution had proved the defendant posed a flight risk. The court was reportedly satisfied that no condition or set of conditions could guarantee Eisenberg’s appearance in court if released on bail.

Eisenberg tried to flee the US

As Invezz previously highlighted, Eisenberg was arrested in late December 2022 in Puerto Rico. This was after the US Department of Justice pursued criminal charges against him, as filed by the United States Attorney Damian Williams.

The complaint noted that the trader had been indeed behind the $110 million exploit of decentralised finance (DeFi) platform Mango Markets. He had also later owned up to the exploit conducted in October last year, referring to his actions as a result of a “highly profitable trading strategy.”

Although he later returned some of the loot after agreeing with the Mango team, he still held onto more than $40 million and allegedly tried to flee the US.

In his order, judge McGiven said Eisenberg had family ties abroad, and that the knowledge he faced a potentially long prison term if convicted, added to the weight against a bail package.

Eisenberg, who faces market manipulation and fraud among other charges, was detained a few weeks after former FTX CEO Sam Bankman-Fried was arrested in the Bahamas and later extradited to the US.

The FTX founder is out on a $250 million bail and pleaded not guilty to multiple criminal counts, including wire fraud, conspiracy to commit wire fraud and money laundering.

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