Fraud trial on mango market exploiter behind $116 million theft pushed to April

Attorneys representing the $116 million mango market manipulation have convinced a judge to postpone the fraud trial until April 8, 2023.

Avraham Eisenberg's fraud trial was scheduled to begin on December 4, but a number of factors have affected the trial's schedule, according to his lawyers, who successfully petitioned District Court Judge Arun Subramanian for a continuance on November 2.

“As discussed at today's conference, the request for continuity has been granted. Trial in this case will begin on April 8, 2024,” Subramanian said in a November 3 court filing.

U.S. Attorneys unsuccessfully argued the motion for a continuance. Subramanian also ordered US prosecutors and Eisenberg's lawyers to submit a revised pretrial motion and deposition schedule by November 7.

Despite admitting his involvement in the exploitation of Mango Markets, Eisenberg pleaded not guilty in June to three felony charges of wire fraud, securities fraud and wire fraud.

At the hearing, Eisenberg's attorneys said they needed more time to sift through discovery materials submitted by U.S. prosecutors.

“In this case, the government has issued a substantial discovery. […] The defense is still being analyzed and discussed with the client.

The lawyers added that they had no time to prepare with Eisenberg when he was “unexpectedly” transferred to the Metropolitan Detention Center (MDC) in Brooklyn on October 26.

Eisenberg was not allowed to turn over the discovery materials, which he explained were other legal documents related to the trial.

“The move to MDC has, and will continue to, significantly inhibit defense counsel from contacting Mr. Eisenberg,” the attorneys added.

MCD in November.

Related: How Low Liquidity Caused Mango Markets to Lose Over $116 Million

The Securities and Exchange Commission sued Eisenberg on January 20, accusing Mango Market Management token MNGO of taking out “large loans” on inflated securities and draining Mango's treasury of around $116 million.

Mango Markets is now suing Avraham Eisenberg for the $47 million they stole. https://t.co/H48nPPl13h

— web3 is great (@web3isgreat) January 26, 2023

It follows Eisenberg's arrest in Puerto Rico three weeks ago on December 27th.

Eisenberg publicly acknowledged the exploit on October 15, 2022, stating that the practice was completely legal. It initially sent $67 million as a grant agreement to a decentralized autonomous organization for mango marketing. However, the group behind Mango Market sued Isenberg for $47 million in damages and interest.

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