Attorneys representing Avraham Eisenberg argued he had already settled his dispute with Mango DAO and shouldn’t have to pay back any more funds.
Avraham Eisenberg, who is accused of exploiting the financial system of bankruptcy, Avraham Eisenberg, wants to keep his share of crypto obtained through the so-called “gem trading scheme”.
On February 15, Eisenberg’s lawyers filed a complaint in the New York District Court against the judgment of Mango seeking $ 47 million in damages from the October attack, which removed about $ 117 million from the protocol. The lawyers argue that Eisenberg no longer has to repay any money to the DeFi platform because of his contract with Mango DAO, arguing that “this matter has been settled.”
Mango DAO approved the government’s plan following its asset disposal that saw Eisenberg keep some – $47 million – of the stolen funds as a penalty ordering Mango not to comply with the law.
“Eisenberg transferred $67 million to Mango’s stock,” the attorneys wrote, adding:
“After a few weeks, the Mango Markets team received a refund from Mango Markets. At that time, everyone involved in discussing the matter closed and Mr. Eisenberg heard nothing more from Mango Markets.
However, Mango said in his complaint that the settlement should be voided because it was reached “under duress” and that Eisenberg “did not participate in legal negotiations.”
Eisenberg’s attorneys rejected the allegations, saying the “improper three-month delay” for Mango to file his lawsuit “undermines any alleged damages.” They say the case is to “take advantage” of Eisenberg’s arrest by US authorities in December in Puerto Rico.
The Federal Bureau of Investigation charged Eisenberg with fraud and embezzlement. He is also defending a lawsuit from the US Commodity Futures Trading Commission alleging market fraud and a lawsuit from the Securities and Exchange Commission for violating securities laws related to anti-fraud and stock trading.
Eisenberg has said that his business with Mango was a “lawful open practice, using the protocol as intended”, and called the alleged fraud “a very profitable business plan”.
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