Millions lost by Mango Market Hacker on Aave


Avraham Eisenberg, the crypto trader responsible for the $100 million price manipulation of Mango Markets last month, was unable to manipulate the price of Aave.

A prominent cryptocurrency trader who boasted last month about stealing over $100 million in a contentious price manipulation scheme seems to have lost millions on a similar exploit effort that failed on Tuesday morning.

According to on-chain data, Avraham Eisenberg, the trader responsible for the Mango Market breach in October, recently borrowed 40 million curves tokens through the decentralized lending site Aave. The dramatic action seems to be part of a plan to sell off the tokens, cause the value of CRV to drop, and profit from millions of dollars in short bets on the token, leaving Aave with a significant amount of bad debt.

The strategy did not work as intended though. The price of CRV fell from $0.53 to $0.41 on Tuesday morning before immediately recovering to reach as high as $0.71. According to statistics from CoinGecko, CRV has gained 31% over the last 24 hours to reach $0.67 at the time of writing.

On Monday, an unidentified cybercriminal stole $1 million worth of Binance Coin (BNB) tokens from the multi-chain wallet BitKeep’s token swap service, then routed the proceeds via a U.S. government-backed account.

Eisenberg openly discussed a method to exploit a weakness in Aave’s lending standards that would potentially permit a scheme similar to the one tried by the trader on Tuesday.

In the weeks that followed, neither Aave nor Gauntlet, the financial modelling platform used by Aave, took preventative measures to avoid an attack similar to the one Eisenberg described.

Tuesday afternoon, after the failure of Eisenberg’s short plan, Gauntlet released a statement clarifying that Aave had escaped from the affair relatively undamaged.

“The effort to fit CRV onto Aave failed and was unprofitable,” tweeted Gauntlet. Despite this, Aave’s insolvency situation has significantly diminished.

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