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Guilty Verdict for Avraham Eisenberg in Mango Markets Exploit Case

Key Takeaways

  • Avraham "Avi" Eisenberg was found guilty of fraud and manipulation in a $110 million exploit of Mango Markets;
  • His sentencing is set for July 29, with a potential 20 years in prison;
  • Eisenberg will also face civil lawsuits from the SEC and CFTC.
Guilty Verdict for Avraham Eisenberg in Mango Markets Exploit Case

On April 18, the jury at the United States District Court for the Southern District of New York found Avraham "Avi" Eisenberg guilty of wire fraud, commodities fraud, and commodities manipulation.

This verdict relates to Eisenberg's role in a $110 million exploit of the Mango Markets decentralized exchange when he inflated collateral values and took out loans from Mango's treasury.

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This case follows his arrest in Puerto Rico in December 2022, subsequent to the October exploit. Eisenberg has been in US custody since January 2023.

Despite Eisenberg returning $67 million days after the exploit and his defense framing it as a legitimate, high-risk trading strategy that involved significant personal investment and exposure, prosecutors highlighted his scheme as a clear instance of fraud.

Consider this scam. A person sells a fake diamond ring, worthless plastic. The con man disappears and runs off. This case is a modern twist on that.

Judge Richard Berman, presiding over the case, is scheduled to sentence Eisenberg on July 29, with potential penalties reaching up to 20 years in prison.

Post-trial, Eisenberg is expected to face civil lawsuits from the US Securities and Exchange Commission and the Commodity Futures Trading Commission. These lawsuits, which had been on hold, are set to continue two weeks after the criminal case's end.

This case highlights the growing legal scrutiny in crypto, serving as a reminder of the consequences of market manipulation.

Several other high-profile crypto cases are ongoing in the US, including that against FTX's Sam Bankman-Fried. A recent update of this case is that he appealed his 25-year sentence and conviction on seven felony counts.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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