Trial Nears Verdict in $110 Million Crypto Fraud Case Against Avraham 'Avi' Eisenberg
Summary:
Deliberation begins in the trial of Avraham "Avi" Eisenberg, facing charges of market manipulation and fraud against decentralized exchange, Mango Markets for an estimated $110 million. Accused of fraudulently inflating the token price against USD Coin and removing assets from the platform, Eisenberg asserts he employed legitimate trading strategies. Having returned $67 million of crypto assets to Mango Markets, Eisenberg claims the remainder was legally obtained. With potential prison time of up to 20 years if convicted, Eisenberg also faces pending civil action from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission.
The trial concerning charges of market manipulation and fraud levied against Avraham "Avi" Eisenberg is now in the deliberation phase. Eisenberg is implicated in an alleged financial attack on Mango Markets, a decentralized exchange system, with damages measuring approximately $110 million. The jury was dismissed by Judge Richard Berman on April 17, after deliberating in the United States District Court for the Southern District of New York, following the consolidation of arguments from both the prosecution and defense. The courtroom will reconvene on the following day to potentially determine whether Eisenberg is guilty of manipulating and defrauding commodities, subsequent to a fortnight's trial. Authorities accuse Eisenberg of using Mango Markets to substantially inflate the token price relative to the USD Coin (USDC) in October 2022, by making rampant purchases and then withdrawing those assets from the platform. Eisenberg was apprehended by American officials while in Puerto Rico in December of the same year, and they insist that he deliberately participated in a plot to tamper with the pricing of perpetual futures on Mango Markets. In the April 17 closing statements, Eisenberg's legal counsel argued that his actions constituted a fruitful and lawful trading scheme, yielding an estimated $110 million in profit, and did not amount to any criminal misdoings. The prosecution contradicted this, asserting that Eisenberg perpetrated fraud by making deceptive claims to withdraw funds from Mango Markets. According to Inner City Press, Eisenberg's lawyer stated that Eisenberg followed all the rules of Mango Markets' smart contracts, that the money he withdrew was his own, and not borrowed, and that he subsequently paid back the remaining funds. Eisenberg then returned crypto assets worth around $67 million back to Mango Markets, however, he asserts that he obtained the left-over funds lawfully. The defense stated, "He managed $110 million. But his intention was to return the money. I know you may not agree, but this is how affairs in the cryptocurrency world are conducted. He dispatched $67 million back. What remains were simply the earnings". The jury may reach a verdict as soon as April 18. If Eisenberg is convicted, he may face a possible prison sentence of up to 20 years. Eisenberg has remained in detainment since the beginning of 2023. The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have also initiated legal proceedings against Eisenberg, which will be withheld until the criminal trial concludes.
Published At
4/18/2024 12:35:12 AM
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