Connect with us

Hi, what are you looking for?

Finance

Crypto Trader Convicted in Mango Markets Manipulation Case

In 2022, following his conviction for manipulating the Solana DeFi platform Mango Markets, Avraham Eisenberg fled the United States with the illicit funds.

On Thursday, a jury in Manhattan’s federal court found Avraham Eisenberg guilty of commodities fraud, commodities manipulation, and wire fraud related to a scheme that exploited the Mango Markets cryptocurrency exchange, resulting in a theft of $110 million. Eisenberg, 28, faces up to 20 years in prison, with sentencing scheduled for July 29 by Judge Arun Subramanian of the New York District Court.

Prosecutors described Eisenberg’s actions on October 11, 2022, as a calculated maneuver using Mango Markets—a Solana-based decentralized finance (DeFi) platform—to manipulate market prices. Eisenberg executed trades that inflated the price of Mango’s native token, MNGO, by over 1,000%, using these artificially enhanced values as collateral to withdraw various cryptocurrencies from the platform.

Following the theft, Eisenberg, initially under an alias, proposed a settlement to the Mango Markets DAO (Decentralized Autonomous Organization), offering to return $67 million in exchange for immunity from prosecution and retention of the remaining funds. This proposal was ultimately declined by the DAO.

The defense, led by attorney Brian Klein, argued that Eisenberg’s trading activities were within the legal boundaries set by the decentralized platform’s rules. However, this was countered by evidence presented at trial, including Eisenberg’s prior internet searches on market manipulation and fraud, suggesting foreknowledge and intent of wrongdoing.

The verdict marks a significant milestone in the U.S. Department of Justice’s efforts to tackle financial fraud in the cryptocurrency space, emphasizing the application of traditional legal frameworks to emerging financial technologies.

Advertisement

You May Also Like

Cryptocurrency

PancakeSwap has launched SpringBoard, a no-code platform that simplifies token generation and launches on the BNB Chain. SpringBoard's $0 launch costs and fair launch...

Exclusive

Russia sentenced Stanislav Moiseev, the creator of the notorious Hydra darknet marketplace, to life in prison. He was convicted, along with 15 accomplices, of...

Business

MARA, a leading cryptocurrency mining company, has purchased a wind farm in Texas to power its Bitcoin mining operations using renewable energy. The company...

Cryptocurrency

XRP Ledger has cut reserve requirements from 10 to 1 XRP, making wallet creation more inexpensive and user-friendly. By lowering entry barriers and freeing...

polkadot
Polkadot (DOT) $ 9.73 7.15%
bitcoin
Bitcoin (BTC) $ 100,110.82 0.03%
ethereum
Ethereum (ETH) $ 3,933.14 1.51%
cardano
Cardano (ADA) $ 1.14 5.29%
xrp
XRP (XRP) $ 2.44 4.20%
stellar
Stellar (XLM) $ 0.463124 5.06%
litecoin
Litecoin (LTC) $ 126.25 5.86%