Trader claims software error allowed him to earn $100 million from crypto platform, refuses to return funds

Crypto platform Mango Markets almost went bankrupt last year after losing $100 million in a hack last year. Another hack on a crypto trading platform you might think, but the story of Mango Markets was a bit different this time. After all, the man accused by the crypto platform says that he simply applied a very smart trading strategy. His story has since gone viral. Who is right?

Crypto exchange Mango Markets all but collapsed after a 27-year-old trader withdrew millions from the platform, authorities say. Avraham Eisenberg says he did only what Mango’s software code made possible https://t.co/7zySrFjaJr

— WSJ Markets (@WSJmarkets) February 22, 2023

Software

In December, the FBI arrested Avraham Eisenberg in Puerto Rico and accused the 27-year-old trader of manipulating prices on a crypto exchange called Mango Markets. According to the indictment, Avraham took $114 million from the platform in one day.

Mango Markets almost collapsed after withdrawing the money on a single day in October, the indictment said. Avraham Eisenberg, meanwhile, has defended his actions in several interviews by saying that he was only doing what Mango’s software code allowed him to do.

According to his claim, Avraham just took a big loan from Mango markets via their trading software. Thanks to that sum, it became possible for him to drive up the price of a certain cryptocoin and thus easily make a profit on the platform. He repeated this move several times in one day and earned himself a cool $114 million. At the end of the trading day, he withdrew all the money and closed his account.

The platform is now suing Avraham Eisenberg for him to return the full amount.

The US authorities also think that the crypto platform is right and that the trader crossed a clear boundary with his strategy. His lawyers, of course, see it differently, claiming he only owes $67 million in repayments.

To be continued.