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.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
Crypto Day Trading VS Swapping: What’s More Rewarding? (Animated)
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.
