The jury has commenced deliberations regarding charges related to market manipulation and fraud stemming from an alleged $110 million exploit of the Mango Markets decentralized exchange by Avraham “Avi” Eisenberg.
On April 17, proceedings unfolded in the United States District Court for the Southern District of New York, presided over by Judge Richard Berman. Following closing arguments by prosecutors and defense attorneys, Judge Berman adjourned the jury for the day. Deliberations will resume tomorrow as the jury considers whether to find Eisenberg guilty of commodities fraud and commodities manipulation after a two-week trial.
In October 2022, Eisenberg purportedly executed a series of significant purchases on Mango Markets to artificially inflate the token price relative to USD Coin (USDC), withdrawing the assets thereafter. U.S. authorities apprehended Eisenberg in Puerto Rico in December 2022, alleging his involvement in manipulating the price of perpetual futures on Mango Markets.
During closing arguments, Eisenberg’s legal team contended that he had not committed any crimes but rather employed a “successful and legal trading strategy” resulting in approximately $110 million in gains. Prosecutors countered, alleging that Eisenberg resorted to deception to withdraw funds from Mango Markets, implying fraudulent intent.
Eisenberg’s attorney asserted his client’s adherence to Mango Markets’ smart contracts, emphasizing that the withdrawn funds were Eisenberg’s own capital, not borrowed. They highlighted Eisenberg’s return of $67 million worth of crypto to Mango Markets post-exploit, maintaining that he had obtained the remainder of the funds legally.
A jury verdict is expected as early as April 18, with Eisenberg facing up to 20 years in prison if found guilty. He has remained in custody since January 2023. Additionally, Eisenberg faces civil action from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, both of which are on hold pending the conclusion of the criminal trial.
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