Mango Markets Exploitation Trial Heads to Jury

A jury has begun deliberating charges related to market manipulation and fraud following the $110 million embezzlement of the Mango Market decentralized exchange by Avraham “Avi” Eisenberg.

On April 17 in the United States District Court for the Southern District of New York, Judge Richard Berman excused the judge for the day after closing arguments by prosecutors and defense attorneys. After a two-week trial, the men will continue to discuss Eisenberg's guilty pleas to fraud and securities fraud tomorrow.

In the year In October 2022, Eisenberg accused Mango Markets of artificially inflating its value against the USD Coin (USDC) and pulled its assets from the platform. U.S. authorities arrested Eisenberg in Puerto Rico in December 2022 for “knowingly and knowingly” engaging in a scheme to rig the price of perpetual futures on mango markets.

During closing arguments on April 17, Eisenberg's lawyers argued that he did not commit any crimes but developed a “successful and legitimate trading strategy” that resulted in nearly $110 million in profits. Prosecutors said fraud was part of the scheme, saying he “had to lie” to get money out of the mango market.

“My client […] It is fully compliant with Mango Markets' smart contracts,” Eisenberg's lawyer said, according to a report from Inner City Press. “He took his own capital. It was not a loan. And the rest of the money? He soon returned. They called him Avi Brazen. That is not a crime. Mango has not hijacked the market.”

Following the exploit, Eisenberg returned $67 million worth of crypto to Mango Market, but said he obtained the rest legally.

Defense lawyers said “110 million dollars were controlled”. But he wanted his money back. You probably wouldn't. But that's how people do it in this crypto world. He sent $67 million. It was a catch.”

Related: Mango markets as fake diamond ring scam: Prosecutors

Jurors could return until April 18 to rule on the case. According to reports, Eisenberg could face up to 20 years in prison if convicted. He has been in jail since January 2023.

In addition to the criminal charges, Eisenberg faces civil charges filed by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. Both cases were stayed pending the conclusion of the criminal trial.

Magazine: US law enforcement agencies are turning up the heat on crypto-related crimes.