Crypto User Avi Eisenberg Convicted for $110 Million Fraud on Mango Markets Exchange
Summary:
Avi" Eisenberg, a cryptocurrency user, has been convicted for a $110 million fraud scheme against Mango Markets decentralized exchange. The U.S. District Court found him guilty of wire fraud and commodities fraud. Eisenberg returned nearly $67 million post-exploit, but kept over $40 million. He now potentially faces a 20-year prison sentence, with civil enforcement actions expected by U.S. regulatory bodies.
Avi" Eisenberg, a notorious cryptocurrency user, has been convicted for a fraudulent scheme worth $110 million on the Mango Markets decentralized exchange. Jurors in the United States District Court for Southern District of New York pronounced Eisenberg guilty of wire fraud, commodities fraud and market manipulation on April 18. Eisenberg's conviction comes after hours of deliberation following the conclusion of arguments on April 17.
The two-week trial saw Eisenberg's legal team arguing that rather than committing any malicious acts, he implemented a “valid and legal trading strategy,” earning him nearly $110 million from Mango Markets. Post-exploit, Eisenberg returned around $67 million but kept over $40 million following a public governance vote. Prosecutors, on the other hand, framed these actions as fraudulent behavior.
Eisenberg now faces a potential 20-year jail term, but the timeframe for Judge Richard Berman's sentencing remains unknown. Eisenberg's infractions on Mango Markets in October 2022 led to his arrest in Puerto Rico two months later. He has been detained in U.S. custody since January 2023.
With the criminal trial now concluded, it's likely Eisenberg will face administrative enforcement measures enacted by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission in the coming year. The cases had been on hold and can now progress about two weeks post-trial.
In line with this development, US authorities are dealing with multiple other criminal cases against recognizable personalities in the cryptocurrency sector. In March, a former CEO of FTX, Sam Bankman-Fried, was handed a 25-year prison sentence after being convicted on seven felony charges. His legal team is set to appeal. Meanwhile, former Binance CEO Changpeng Zhao is set to be sentenced on April 30 after pleading guilty to a single felony charge.
Published At
4/18/2024 8:27:50 PM
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