• Mango Labs has sued Avraham Eisenberg, who exploited the DeFi protocol and gained $114 million in October 2022.
• The lawsuit is asking Eisenberg to return the $47 million he gained following his attack, and void the agreement between him and the Mango DAO.
• The Mango developers claim the agreement was entered into under duress and is invalid and unenforceable.
Mango Labs, the developer behind the decentralized finance (DeFi) protocol, has filed a lawsuit against Avraham Eisenberg, the individual who exploited the protocol and gained $114 million in October 2022. In the lawsuit, Mango Labs is asking Eisenberg to return the $47 million he gained following his attack, and void the agreement between him and the Mango DAO.
On October 11, 2022, Eisenberg executed a malicious attack on the DeFi protocol and bragged about it on Twitter afterwards. The attack resulted in Eisenberg gaining $114 million, which Mango Labs is now attempting to reclaim. The protocol developer also wants to nullify the agreement between Eisenberg and Mango’s DAO, which allowed the attacker to keep $47 million from the exploit and protect him against any potential lawsuit.
Mango Labs claims that the agreement was entered into “under duress” and is therefore invalid and unenforceable. In the lawsuit, the developer wrote: “Defendant forced Mango DAO to enter into an unenforceable settlement agreement—under duress—purporting to release depositors‘ claims against him and precluding them from pursuing a criminal investigation.”
The lawsuit also calls out Eisenberg for his “unlawful conduct”, alleging that he “manipulated the value of the Mango token (MNGO) and, through fraud and deception, converted approximately $114 million from Mango Markets depositors into his own accounts.”
Mango Labs is now seeking to reclaim the $47 million that Eisenberg was allowed to keep, as well as punitive damages. The lawsuit also calls for the agreement between Eisenberg and the Mango DAO to be voided, so that the depositors are able to pursue a criminal investigation.
This lawsuit is the latest development in the ongoing saga between Mango Labs and Eisenberg, and it remains to be seen how the case will be resolved. Whatever the outcome, the incident highlights the importance of safety and security measures for DeFi protocols, so that similar situations can be avoided in the future.