Avraham “Avi” Eisenberg, a prominent figure in the crypto world, has been found guilty of wire fraud, commodities fraud, and commodities manipulation in a $110 million exploit of the Mango Markets decentralized exchange. The jury at the United States District Court for the Southern District of New York delivered the verdict on April 18, following Eisenberg’s arrest in Puerto Rico in December 2022.
Despite returning $67 million days after the exploit and claiming his actions were part of a legitimate, high-risk trading strategy, prosecutors labeled Eisenberg’s scheme as a clear instance of fraud. Judge Richard Berman is set to sentence Eisenberg on July 29, with potential penalties of up to 20 years in prison.
In addition to the criminal case, Eisenberg is expected to face civil lawsuits from the US Securities and Exchange Commission and the Commodity Futures Trading Commission. These lawsuits, which were put on hold during the criminal trial, are scheduled to resume two weeks after the conclusion of the criminal case.
This case serves as a stark reminder of the legal scrutiny facing the crypto industry and the consequences of market manipulation. It is part of a larger trend of high-profile crypto cases in the US, including the ongoing case against FTX’s Sam Bankman-Fried, who recently appealed his 25-year sentence and conviction on seven felony counts.
As the crypto industry continues to evolve, cases like Eisenberg’s highlight the importance of transparency and compliance to avoid legal repercussions. Stay tuned for updates on this developing story as Eisenberg awaits his sentencing and faces the civil lawsuits from regulatory authorities.
