The Commodity Futures Trading Commission is suing Avraham Eisenberg, aka Mango Avi, over alleged manipulation of swaps on Mango Markets, a decentralized exchange on the Solana blockchain.
The new complaint from the CFTC notes "a manipulative and deceptive scheme to artificially inflate the price of swaps offered by Mango Markets."
Specifically, Eisenberg managed to inflate the native MNGO token relative to stablecoin USDC by buying the small-cap token in bulk. Its price spiked by 1,300% in October as a result. Eisenberg and his team were then able to use the inflated MNGO as collateral to take out more USDC on loans — all of which he admitted to, while maintaining that his actions were legal.
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