Key Takeaways:
- Avraham “Avi” Eisenberg could face up to 20 years in prison for commodities fraud and manipulation charges related to a $110 million exploit of Mango Markets.
- The jury began deliberations on April 17 at the U.S. District Court for the Southern District of New York, after a two-week trial examining the legitimacy of Eisenberg’s trading strategies.
- Eisenberg’s defense claims his actions were part of a lawful trading strategy, while prosecutors argue his method involved deception to illicitly extract funds from Mango Markets.
In a notable legal battle, Avraham “Avi” Eisenberg faces possible imprisonment for up to 20 years if convicted on charges of commodities fraud and manipulation.
These charges stem from his alleged involvement in a $110 million exploit of the Mango Markets decentralized exchange in October 2022.
Federal jurors in New York heard sharply contrasting arguments on whether a trader manipulated the Mango Markets cryptocurrency exchange to steal $110 million or executed a perfectly legal strategy. https://t.co/XkDffMLWx3
— Bloomberg Crypto (@crypto) April 17, 2024
As of April 17, the jury at the United States District Court for the Southern District of New York commenced deliberations following the final arguments presented by both prosecution and defense teams.
The deliberation follows a two-week trial where Eisenberg’s legal strategies were scrutinized.
According to allegations, Eisenberg manipulated the price of Mango Markets’ token against the USD Coin by executing large-scale purchases, subsequently withdrawing the inflated assets.
JURY DELIBERATES ON $110M MANGO MARKETS FRAUD TRIAL
— BSCN (@BSCNews) April 17, 2024
– Avi Eisenberg awaits the jury's decision on charges related to alleged $110 million fraud through trades on @MangoMarkets, facing up to 20 years in prison if convicted.
– The trial in New York saw closing arguments,… https://t.co/s1kEWkhU2p pic.twitter.com/URvM5lmHAS
Arrested in Puerto Rico in December 2022, U.S. authorities accused him of deliberately engaging in a price manipulation scheme.
During the trial’s concluding arguments, Eisenberg’s defense maintained that his actions constituted a legitimate and successful trading strategy, achieving approximately $110 million in gains.
They argued that Eisenberg withdrew funds rightfully his, operating within the legal boundaries of Mango Markets’ smart contracts.
OK – now crypto trial of US v. Avi Eisenberg on Mango Markets exploit, defense closing argument, Inner City Press has been covering the case and trial and will live tweet, thread below pic.twitter.com/dMQfvjrd2e
— Inner City Press (@innercitypress) April 17, 2024
Conversely, prosecutors argued that deception was integral to Eisenberg’s strategy to extract funds, characterizing his actions as fraudulent.
Post-exploit, Eisenberg returned $67 million in cryptocurrency to Mango Markets, asserting the legality of his remaining gains.
His defense underscored his intent to return the funds and characterized his actions as typical in the cryptocurrency world.
OPINION: Government Actions Against Avi Eisenberg Show How Poorly Digital Assets Are Classified in US
— Laura Shin (@laurashin) April 17, 2024
🥭 The vastly different—and mutually exclusive—conclusions that the SEC, CFTC, and DOJ have come to about MNGO have exacted a real cost on the growth of the US crypto industry,…
As the jury deliberates, a verdict could potentially be delivered as early as April 18.
Concurrently, Eisenberg faces civil lawsuits from both the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, with proceedings paused pending the outcome of this criminal trial.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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