• The U.S. Securities and Exchange Commission (SEC) has charged Avraham Eisenberg with manipulating the MNGO cryptocurrency token.
• Eisenberg used multiple accounts to swap perpetual futures and MNGO tokens and purchased $116 million of other crypto assets from Mango.
• The SEC seeks to have Eisenberg refrain from certain activities by obtaining permanent injunctive relief against him, as well as surrendering his ill-gotten gains through disgorgement with prejudgement interest and civil penalties.

The U.S. Securities and Exchange Commission (SEC) has charged Avraham Eisenberg with manipulating the MNGO cryptocurrency token. According to a Jan. 20 press release, the regulator accused Eisenberg of exploiting the MNGO token and driving up its price, ultimately purchasing $116 million of other crypto assets from Mango and virtually exhausting the platform’s funds.

Beginning in October 2022, Eisenberg began using multiple accounts to swap perpetual futures and MNGO tokens. This caused a significant surge in the price of MNGO tokens, allowing Eisenberg to take advantage of the situation and purchase a large amount of crypto assets from Mango. Once Eisenberg had purchased the assets, the MNGO token price began to fall and left Mango Markets with a deficit.

The SEC says that Eisenberg illegally stole $116 million and is charged with violating the anti-fraud and market manipulation sections of securities laws. The regulator is seeking to have Eisenberg refrain from certain activities by obtaining permanent injunctive relief against him, as well as surrendering his ill-gotten gains through disgorgement with prejudgement interest and civil penalties. The amount of money that Eisenberg will be required to pay is yet to be determined.

Additionally, the SEC has determined that the MNGO token was offered and sold as a security. Investigations into other securities violations and other parties are ongoing, and it is not clear whether Mango Markets or its operators are involved.