Mango Markets exploiter found guilty after jury deliberations

A jury has reached a verdict against Avraham “Avi” Eisenberg, the individual suspected of orchestrating a $110 million scam on the Mango Markets decentralized trading platform, finding him guilty of committing fraud and manipulating markets.

In a court decision on April 18 in the Southern District of New York, a jury declared that Eisenberg was found to have committed wire fraud, commodities fraud, and commodities manipulation. This verdict came after intensive deliberations following the closing arguments on April 17.

For a two-week period, Eisenberg’s defense team asserted that their client didn’t break any laws but rather executed an effective and legitimate trading technique in Mango Markets, generating approximately $110 million. He subsequently returned around $67 million of the earnings, yet kept over $40 million after a community vote on governance. The prosecution countered, labeling Eisenberg’s actions as fraudulent.

The timeline for Judge Richard Berman handing down a sentence for Eisenberg, who could spend up to 20 years in prison following his involvement with Mango Markets in October 2022, remains uncertain. Following his arrest in Puerto Rico in December 2022, Eisenberg has been in U.S. custody since January 2023.

After receiving a decision in the ongoing criminal trial, Eisenberg is expected to be subjected to civil lawsuits from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the year 2023. These cases were previously put on hold but could resume approximately two weeks following the end of the criminal trial.

U.S. courts are currently handling multiple criminal cases involving notable individuals in the cryptocurrency industry. In March, a judge handed down a 25-year sentence for Sam Bankman-Fried, ex-CEO of FTX, following his guilty plea on seven felony counts. However, his legal team has announced their intention to file an appeal. The upcoming sentencing for Changpeng Zhao, former head of Binance, is set for April 30 after he admitted guilt to one felony charge.

Read More

2024-04-18 20:28