A New York jury convicted Avraham Eisenberg of defrauding the crypto market for $110 million.

A federal jury found crypto trader Avraham Eisenberg guilty of fraud and market manipulation.

The lawsuit stems from Eisenberg's exploitation of Mango Markets, a decentralized finance (DeFi) protocol on the Solana blockchain.

Eisenberg was convicted of market fraud.

Eisenberg, 28, was found guilty by a jury in federal court in Manhattan on charges of securities fraud, securities fraud and wire fraud.

“Avraham Eisenberg engaged in a manipulative trading scheme at the cryptocurrency exchange, defrauding the exchange and its investors out of $110 million,” said Justice Department Criminal Division Chief Nicole M. Argentieri.

This is the US Department of Justice's first criminal case targeting cryptocurrency market manipulation.

Mango Markets is a decentralized platform managed by Mango Dao that facilitates the lending, borrowing, exchange and use of cryptocurrencies.

During the trial, prosecutors presented evidence that Eisenberg engaged in a manipulative trading strategy on October 11, 2022.

Eisenberg reportedly used two accounts to simultaneously buy and sell futures tied to the price of Mango's native token MNGO and stablecoin USD Coin. These fraudulent trades increased the contract price by 1,300% in 20 minutes.

As a result, Eisenberg was able to borrow artificially inflated holdings and spent around $110 million in various cryptocurrencies.

Although Eisenberg said the trades were legal and transparent, the jury's deliberations ended in less than a day. Expressing his frustration, Eisenberg's attorney, Brian Klein, announced that he plans to pursue post-trial motions to defend his client.

Eisenberg has since agreed to return $67 million to other token holders to avoid taking legal action against him or freezing his assets.

Eisenberg is in prison awaiting sentencing

In the year After being arrested at his residence in San Juan, Puerto Rico, on December 26, 2022, Eisenberg remained in custody after pleading a flight risk.

Timothy Langan, chief assistant director of the FBI's Crime, Cyber, Response and Services Branch, commented on the matter: “If you engage in fraudulent activities in the cryptocurrency space or other market manipulations, you will be held accountable. In order to get their ill-gotten gains.

He also emphasized that the agency is working to hold individuals accountable for such fraud.

Eisenberg's sentencing is scheduled for July 29. He faces up to 10 years in prison on the securities fraud and racketeering charges and up to 20 years on the wire fraud charges.