SEC acts against Mango Markets ‘scammer’

The US Securities and Exchange Commission has taken legal action against an individual accused of market manipulation of MNGO.

The US Securities and Exchange Commission has acted against a consumer accused of exploiting decentralized exchange Mango Markets, costing the company millions of dollars.

The decision comes after a similar action was undertaken by the Commodity Features Trading Commission (CFTC).

SEC has alleged that Avraham Eisenberg is involved in the market manipulation of MNGO, the company’s native token, stealing $116m worth of cryptocurrency from the platform.

Eisenberg is said to have made several big purchases of the token, intended to quickly increase its price before dumping it all for immediate value, taking the entire market down with it when releasing the funds in several other currencies instead.

SEC Crypto Assets and Cyber Unit and director David Hirsch outlined the nature of the offense and why Eisenberg ought to be held accountable.

“Eisenberg engaged in a manipulative and deceptive scheme to artificially inflate the price of the MNGO token, which was purchased and sold as a crypto asset security, in order to borrow and then withdraw nearly all available assets from Mango Markets, which left the platform at a deficit when the security price returned to its pre-manipulation level”, he said.

SEC has sought assistance from the FBI, the CFTC, and now the US Attorney’s Office for the Southern District of New York to bring the charges against Eisenberg.

Eisenberg has acknowledged his actions publicly, saying that he thought them to be a “high profitable trading strategy” which they were for him.

He has refuted the accusations that he had intentionally sought to pump and dump the token or contribute to Mango Markets’ financial troubles.

Nevertheless, he is now facing charges of violating the anti-fraud and market manipulation provisions of securities laws.

Regulators in the US have been actively working to press on with charges against suspected crypto manipulation and fraud. The US Department of Justice recently secured a guilty plea against a Silk Road runaway.

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Written by Alex

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Alex is a well-rounded crypto writer who focuses on general market and legal developments. His main interest lies in how crypto gaming can become a more permanent part of the gaming landscape and how blockchain holds benefits to players they are not even aware of.

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