Mango Markets Exploiter Thought a DAO Protected Him. Then US Courts Showed Up

Subscribers:
6,500
Published on ● Video Link: https://www.youtube.com/watch?v=vM5TWqWKXsM



Category:
Show
Duration: 4:32
3 views
1


Avraham Eisenberg lost his gamble in more ways than one.

Mango Labs’ $47 million civil suit against crypto trader Avraham Eisenberg isn’t just the latest legal drama to emerge from the destructive exploit of Mango Markets. It’s also a case study in how the ideals of crypto governance take a back seat to real-world contracts law.

Eisenberg, who faces criminal charges over the $114 million escapade, had in October negotiated a settlement with Mango Markets’ decentralized autonomous organization (DAO) that he thought exempted him from civil liability. To him, his trades were legal and used “the protocol as designed.” But, just in case his victims felt otherwise, he negotiated with them to make sure they would not sue.

Representatives for Mango Markets now say the DAO’s own deal should be thrown out for effectively violating contracts law; they’re demanding Eisenberg pay back the DAO. In doing so, Mango Markets may unwittingly highlight how powerless crypto governance is when grappling with the conventional legal system.

Mango Markets was a popular venue for trading crypto tokens and derivatives on the Solana blockchain that is managed by a DAO. Holders of the MNGO governance token vote on everything from token listings to debt repayments. It's widely recognized as one of the most active DAOs in the Solana ecosystem (although the U.S. Securities and Exchange Commission has called Mango DAO governance a sham).

See more: Mango Markets to Resume Crypto Trading, SEC Be Damned

Members of Mango DAO had voted not to hold Eisenberg accountable in exchange for him returning $67 million in crypto. Daffy Durairaj, a co-founder of Mango Markets, even said he’d see to it that Eisenberg was “cleared of any wrongdoing.” Based on his own public gloating over his “highly profitable trading strategy,” Eisenberg thought he was in the clear.

Durairaj and Mango Labs are now leading a lawsuit against Eisenberg to get back the $47 million he kept. It’s seemingly a violation of the agreement – a vote on a smart contract by a DAO – struck between victim and perpetrator.

Eisenberg believed the negotiated settlement put the issue to bed. “I believe all our actions were legal,” he said in a Twitter thread where he self-doxxed as the trader whose massive trades in MNGO and perpetual-futures contracts crippled Mango Markets with bad debt.

But that negotiated proposal holds no legal water, according to lawyers at Canadian law firm McMillan LLP interviewed by CoinDesk.

“The Mango Markets settlement appeared unenforceable from the get-go,” said Benjamin Bathgate, a commercial litigator with the firm.

He and colleague Reuben Rothstein said they were surprised Mango’s core contributors ever proposed invalidating their claims – and surprised, too, that the vote passed.

“However, we were not surprised to see signs that one or more affected users assisted in the criminal investigation. And we were not at all surprised to see, a few days ago, Mango Markets bring a civil lawsuit seeking to render the settlement void and bring a claim against Eisenberg to make its users whole. Not in the least,” Bathgate and Rothstein said in an email.

Indeed, Mango Labs’ suit against Eisenberg casts aside its “negotiated settlement” with Eisenberg as “unenforceable” and requests the court toss it aside.

Eisenberg “forced Mango DAO to enter into an unenforceable settlement agreement – under duress –...

https://www.coindesk.com/business/2023/01/31/mango-markets-exploiter-thought-a-dao-protected-him-then-us-courts-showed-up/

#crypto #bitcoin #ethereum #cryptocurrency #news #blockchain #litecoin #cryptonews #cryptonewstoday #cryptoworld #cryptoworlddaily #daogovernance #daogovernancenews #daogovernancenewstoday #mangomarkets #mangomarketsnews #mangomarketsnewstoday #avrahameisenberg #avrahameisenbergnews #avrahameisenbergnewstoday #dao #daonews #daonewstoday #lawsuit #lawsuitnews #crypto
***NOT FINANCIAL, LEGAL, OR TAX ADVICE! JUST OPINION! I AM NOT AN EXPERT! I DO NOT GUARANTEE A PARTICULAR OUTCOME I HAVE NO INSIDE KNOWLEDGE! YOU NEED TO DO YOUR OWN RESEARCH AND MAKE YOUR OWN DECISIONS! THIS IS JUST ENTERTAINMENT! USE ALTCOIN DAILY AS A STARTING OFF POINT!

This information is what was found publicly on the internet. This information could’ve been doctored or misrepresented by the internet. All information is meant for public awareness and is public domain. This information is not intended to slander harm or defame any of the actors involved but to show what was said through their social media accounts. Please take this information and do your own research.

bitcoin, blockchain, crypto, cryptocurrency, altcoin, investment, ethereum, bitcoin crash, xrp, cardano, ripple




Other Videos By Crypto World Daily


2023-01-31Ethereum Developers to Launch New Testnet ‘Zhejiang’ for Simulating ETH Withdrawals
2023-01-31Crypto Markets Analysis: Bitcoin, Ether Price Surge a Reversal From Darkest Days of 2022
2023-01-31Social Token Project Rally Shuts Ethereum Sidechain, Stranding Users’ Crypto Assets
2023-01-31Blur Reportedly Finds Loophole in OpenSea's Blocklist as Marketplace War Escalates
2023-01-31Wormhole Wins Vote to Be Uniswap’s Designated Bridge to BNB Chain
2023-01-31Commissioner: CFTC Needs More Dialogue With Market Participants to Modernize Regulation
2023-01-31Metaverse Tokens Outperforming Bitcoin in January
2023-01-31Shuttered Crypto Exchange Bitzlato Says It Plans to Resume Operations: Report
2023-01-31Bitcoin Miner Core Scientific to Borrow $70M From B. Riley
2023-01-31Fidelity Digital Assets' Head of Institutional Crypto Exits Role
2023-01-31Mango Markets Exploiter Thought a DAO Protected Him. Then US Courts Showed Up
2023-01-31DeFi Liquidity Protocol Squid Raises $3.5M Round Led by North Island Ventures
2023-01-31What's Holding DAOs Back?.
2023-01-31The NFT Community Could Forgive BAYC Founders’ Esoteric Interests.
2023-01-31Strike Expands Lightning Network-Powered Remittances to Philippines
2023-01-31Structured Finance Platform Intain Opens Tokenized Marketplace for Asset-Backed Securities
2023-01-31Initial Coin Offerings Deserve a Rethink.
2023-01-31US Senators Press Crypto Bank Silvergate on Ties to FTX: Bloomberg
2023-01-31Crypto Issuance Startup Tokensoft Brings Its Token Launchpad On-Chain
2023-01-31Nic Carter from Castle Island Ventures Backs New Crypto VC Firm
2023-01-31Jim Henson's Beloved Children Series 'Fraggle Rock' Releases NFT Trading Cards



Tags:
bitcoin
ethereum
cryptocurrency
altcoin
crypto
news
crypto news
crypto news today
crypto currencies
investing
blockchain news
blockchain today
altcoin news
cryptocurrency news
crypto world
crypto world daily
dao governance
dao governance news
mango markets
mango markets news
avraham eisenberg
avraham eisenberg news
dao
dao news
lawsuit
lawsuit news
mango markets exploiter thought a dao protected him. then us courts showed up
bitcoin news
bitcoin today