Mango Labs LLC is seeking a federal court in Manhattan to order crypto trader, Eisenberg, to pay back the rest of the money after he allegedly used a complicated scheme to drain the exchange of $117 million last year. But Eisenberg has argued that he should not be required to pay back any more of the disputed funds.
Eisenberg's attorneys have stated that eligible Mango Markets members received reimbursement from the Mango Markets treasury, making all involved consider the matter closed. However, Mango Labs has moved to file a motion against Eisenberg, alleging that the settlement agreement was reached “under duress,” therefore invalid and unenforceable. In addition to the lawsuit from Mango Labs, Eisenberg is facing criminal charges and he’s being sued by the Commodity Futures Trading Commission and the Securities and Exchange Commission.
The suit from Mango Labs is yet another twist in the saga between Eisenberg and the Mango Labs, as the case has attracted the attention of Twitter Inc. and other tech giants. It remains to be seen how the courts will rule on the matter. The outcome of the case could set a precedent for future disputes between crypto traders and exchanges.
0. “Accused Mango Labs Crypto Scammer Seeks to Keep Disputed Funds” BNN Bloomberg, 16 Feb. 2023, https://www.bnnbloomberg.ca/accused-mango-labs-crypto-scammer-seeks-to-keep-disputed-funds-1.1884533
1. “Mango Market exploiter files to keep $47M bounty payment” CryptoSlate, 16 Feb. 2023, https://cryptoslate.com/mango-market-exploiter-files-to-keep-47m-bounty-payment/
2. “Mango Markets exploiter seeks to keep disputed funds paid as ‘bug bounty’” Cointelegraph, 16 Feb. 2023, https://cointelegraph.com/news/mango-markets-exploiter-seeks-to-keep-disputed-funds-paid-as-bug-bounty