By James Davis
In recent months, there have been increased attacks on DeFi protocols. Trading platform Mango Markets was among the many protocols exploited last year. The attacker made away with $117 million. However, Mango Markets managed to recover $67 million from Avraham Eisenberg, who was the mastermind of the attack.
Now the trading platform wants Eisenberg to return the remaining amount, but he insists that he will retain the money. His lawyer argues that his client had settled with the Mango Markets and, therefore, he had the right to keep his share which the two parties had agreed.
Mango Markets Wants Court to Declare Initial Agreement Invalid
Mango Markets filed four lawsuits against Eisenberg regarding the exploit that he executed. The fourth lawsuit, which was filed late last month, demanded the attacker return $48 million and also requested the court to deem the initial agreement as unenforceable and invalid.
Mango Markets DAO’s agreement with Eisenberg involved letting him retain the $48 million and a promise that the protocol would not file criminal charges against him. However, in January, Mango Markets changed its tune claiming that the agreement was reached under duress.
Eisenberg’s lawyer told the court that after Mango Markets DAO approved the agreement, his client immediately returned the $67 million as per the arrangement with the protocol. In addition, the lawyer explained that Mango Markets compensated its eligible members a few weeks later, and the two parties deemed the case closed.
However, according to the Mango Markets leadership, the agreement was not lawful. It claims that the protocol only wanted to recover its customers’ funds at the time. Eisenberg’s lawyer filed against Mango Markets on February 15, opposing the fourth lawsuit. The lawyer wants the initial agreement to stand.
Further, the lawyer suggested that Mango Markets was looking to benefit from his client’s other ongoing cases. The United States Securities and Exchange Commission and other regulators charged Eisenberg with various counts like price manipulation and violation of securities law.
DeFi Attacks in 2022
Data from Statista indicates that there were more exploits in 2022 than in any other year. The DeFi space was the most targeted, with many protocols losing millions of dollars. For example, Ronin Network and Wormhole Bridge lost $601 million and $320 million, respectively.