Mango Markets $116 Million Fraud Trial Delayed as Eisenberg Pleads Not Guilty
Summary:
The fraud trial involving Avraham Eisenberg and the $116 million Mango Markets exploitation has been postponed to April 8, 2023, as his legal team sought more time to analyze vast evidence offered by U.S. prosecutors. The court also ordered prosecutors and Eisenberg's legal team to rework the pretrial motions schedule. Eisenberg had confirmed his role in Mango Markets' exploit but pleaded not guilty on three severe charges. The Securities and Exchange Commission also charged Eisenberg for depleting Mango Markets treasury by manipulating the MNGO token. Mango Markets is suing for recovery of the remaining $47 million stolen.
In what has been seen as a significant development in the case involving Avraham Eisenberg and the fraudulent exploitation of Mango Markets worth $116 million, the anticipated trial has been postponed to April 8, 2023. Lawyers for Eisenberg had initially been expected to see the trial kick off on December 4, yet certain circumstances have resulted in the trial planning being impacted. After successfully requesting a continuance, the onset of the trial has moved by the decision of District Court Judge Arun Subramanian.
Judge Subramanian, while consenting to the delay, also stated, “In line with the discussions during our conference, the plea for continuance is accepted. The trial will now start on April 8, 2024.” Against the pleas of the United States prosecutors, judge confirmed a shift in trial date and asked both the U.S. prosecutors and Eisenberg’s legal team to rework the schedule for pretrial movements and submissions before November 7.
In the case, where Eisenberg has already confirmed his role in the malicious ventures of Mango Markets, the accused entered a plea of not guilty on three severe charges in June - commodity manipulation, wire fraud, and commodities fraud.
Judge Arun Subramanian consented to Eisenberg's plea for continuance on November 3rd. To justify the plea, Eisenberg’s legal team reasoned that more time was needed to analyze the vast evidence offered by the U.S. prosecutors.
Complicating matters, Eisenberg experienced a sudden transfer to the Metropolitan Detention Center (MDC) in Brooklyn on October 26th. The transfer hindered Eisenberg's ability for trial preparation as he was barred from carrying the legal documents and evidence analysis crucial for the case.
This backlash didn't stop at Eisenberg. The former CEO of FTX, Sam Bankman-Fried, also found himself in MDC after a ruling on all seven fraud charges on November 2.
Additionally, on January 20, the Securities and Exchange Commission raised charges against Eisenberg claiming that he maliciously influenced the governance token of Mango Markets, MNGO, leading to the depletion of Mango's treasury to the tune of nearly $116 million.
It’s also worth noting that Eisenberg is at the centre of a lawsuit filed by Mango Markets. The aim of this suit is to recover the leftover sum of $47 million which Eisenberg is accused of stealing.
Following Eisenberg’s arrested in Puerto Rico on December 27, he publicly confessed to his exploits in Mango Markets on October 15, 2022. Though he affirmed that his actions were within the legal boundary, he had previously returned $67 million to Mango Markets' decentralized autonomous organization under a bounty agreement. Nevertheless, Mango Markets brought a lawsuit against Eisenberg for $47 million in addition to interest for the incurred damage.
Published At
11/4/2023 5:23:12 AM
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