He stole BRL 620 million in cryptocurrencies and bet he wouldn’t be arrested, is now on trial and could face 40 years in prison

The hacker who stole decentralized brokerage Mango Markets in October 2022 was arrested in December and has already had his first trial in the United States after stealing BRL 620 million worth of cryptocurrencies.

Puerto Rican Avraham Eisenberg, just 27 years old, is the prime suspect in the investigation investigating the crime. In October 2022, Mango Markets lost millions of dollars due to the hack.

On the afternoon of last Thursday (2), he had his first hearing, after his arrest on December 26, 2022. In Manhattan court he must answer for the crimes of commodity fraud, market manipulation and electronic fraud.

In October last year, Eisenberg even bet he wouldn’t be arrested for the theft of Mango Markets, boasting about the hack of more than half a billion reais.

Hacker who stole decentralized cryptocurrency exchange faces 40 years in prison

Arrested in San Juan, Puerto Rico, an unincorporated territory of the United States, the hacker has his case pursued in New York. There, Avraham Eisenberg is accused of crimes committed in the Solana cryptocurrency ecosystem.

For Assistant Attorney General Kenneth A. Polite, Jr., of the Justice Department’s Criminal Division, the hacker’s arrest shows that the Justice Department will crack down on crime even in new technological frontiers.

“The exploitation of decentralized finance platforms is the new frontier of old-fashioned financial crimes, where criminals exploit emerging technologies for their own personal gain. With this indictment, the Criminal Division is sending the message that regardless of the mechanism used to commit market manipulation and fraud, we will work to hold those responsible accountable.”

After denouncing the invasion of the decentralized platform, the suspected hacker was investigated by the FBI, the Federal Revenue and the US CVM, among others, among other public agencies in the country.

According to Michael J. Driscoll, deputy director of the FBI, no crime in the financial markets will go unpunished.

“The defendant allegedly carried out a scheme whereby he fraudulently acquired more than $100 million worth of cryptocurrencies. The FBI is committed to protecting the integrity of all financial markets and will ensure that any person willing to exploit one is held accountable in the criminal justice system.

What is Mango Markets?

With its functioning as DEX i.e. a decentralized cryptocurrency exchange, Mango Markets has gained popularity in the Solana ecosystem.

The platform allows investors to trade tokens and lend their coins at interest. Administration of the exchange is carried out by Mango DAO, an entity under the command of the holders of the MNGO cryptocurrency.

However, as of September 2021, the Mango cryptocurrency is 95% melted, worsening after the hacker attack under investigation.

It is worth noting that the court has not revealed whether any stolen cryptocurrency is in the possession of the investigators, i.e. Mango does not know whether it will be refunded.

Source: Live Coins