The U.S. Commodity Futures Trading Commission has filed a lawsuit in opposition to Avraham Eisenberg, the particular person slack the Mango Markets exploit.

In a courtroom filing on Monday, the CFTC charged Eisenberg with two counts of market manipulation. The grievance alleged that Eisenberg had “engaged in a manipulative and deceptive plan to artificially inflate the cost of swaps equipped by Mango Markets.”

Within the filing, the CFTC stated Eisenberg had purchased 400 million MNGO-USDC perpetual swaps on the decentralized alternate Mango Markets, which amounted to $19 million. He then equipped large quantities of MNGO on oracle exchanges over a span of no longer up to half-hour, which inflated the cost of these moderately illiquid MNGO tokens.

With the cost of his situation now very a lot inflated, Eisenberg then borrowed a total lot of digital property price $114 million from the DEX and effectively drained it of all accessible liquidity. The price of his collateral, however, became an illusion created by stamp manipulation and left Mango Markets holding a basically empty fetch, stated the CFTC.

“The aim of Defendant’s plan became easy: to artificially inflate the cost of his swap contract holdings on Mango Markets through stamp manipulation, in pronounce that he might possibly possibly ‘borrow’ a necessary amount of digital property that he had no plan to repay,” added the CFTC in the filing.

The regulator alleged that Eisenberg’s behavior in arresting in flawed and manipulative act became in violation of the Commodity Alternate Act and a range of sections of the Commission Rules. The CFTC is seeking civil monetary penalties from Eisenberg and other remedial relief, including but no longer restricted to trading bans.

Eisenberg became arrested in Puerto Rico on Dec. 27 on market manipulation expenses. He’s currently in custody pending a trial, after U.S. Magistrate Desire Bruce McGiverin ordered his necessary detention final week.

Avraham Eisenberg’s involvement in exploiting the Mango Markets protocol is reportedly also being investigated by the US Securities and Alternate Commission.