Jury Deliberates In Mango Markets Exploiter Trial

Avi Eisenberg faces a potential 20-year prison term if convicted of commodities fraud and manipulation linked to his purported October 2022 actions on Mango Markets.

A jury deliberates charges of market manipulation and fraud following Avraham “Avi” Eisenberg’s alleged $110 million exploit of Mango Markets.

In the U.S. District Court for the Southern District of New York on April 17, Judge Richard Berman adjourned deliberations for the day after concluding arguments. Deliberations resume tomorrow on Avi Eisenberg’s potential guilt regarding commodities fraud and manipulation.

Allegedly, in October 2022, Eisenberg conducted significant purchases on Mango Markets to artificially inflate token prices against USD Coin. Subsequently arrested in Puerto Rico in December 2022, Eisenberg faces accusations of deliberately manipulating perpetual futures prices on Mango Markets.

In closing arguments on April 17, Eisenberg’s legal team contended that he hadn’t engaged in criminal activity but executed a “successful and lawful trading strategy,” yielding approximately $110 million. Prosecutors alleged he “resorted to deception” to withdraw funds from Mango Markets, implying fraudulent intent.

“My client […] fully complied with the Mango Markets smart contracts,” said Eisenberg’s attorney, according to reporting from Inner City Press. “He withdrew his own capital. It wasn’t a borrow. And the rest of the money? He returned shortly afterwards. They called Avi brazen. That’s not a crime. He didn’t hack into Mango Markets.”

After the exploit, Eisenberg restored $67 million worth of cryptocurrency to Mango Markets, asserting the legality of the remaining funds.

“He had control of $110 million,” said defense attorneys. “But he was seeking to return the funds. Maybe you wouldn’t have done it. But this is how people do it in this world of cryptocurrency. He sent $67 million. What was kept were the profits.”

A verdict in the case may arrive as soon as April 18, potentially leading to a 20-year prison term for Eisenberg if convicted. He has been detained since January 2023.

Alongside the criminal charges, Eisenberg confronts civil suits from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. These actions are on hold until the criminal trial concludes.

READ MORE NEWS ON

Bitcoin | Inflation Deflation Deflation Inflation Cryptocurrencies

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.