Jury to decide fate of accused Mango Markets exploiter in trial

The jury has commenced deliberations over allegations of market manipulation and fraud in relation to a $110 million exploit of the Mango Markets decentralized exchange by Avraham “Avi” Eisenberg.
On April 17, Judge Richard Berman of the United States District Court for the Southern District of New York dismissed the jury for the day following closing arguments made by both the prosecution and defense attorneys. The jury will resume deliberations tomorrow to determine whether Eisenberg is guilty of commodities fraud and commodities manipulation after a two-week trial.
In October 2022, Eisenberg allegedly made a series of significant purchases on Mango Markets to artificially inflate the price of the token compared to USD Coin (USDC), and subsequently withdrew the assets from the platform. Eisenberg was arrested by U.S. authorities in Puerto Rico in December 2022, with claims that he knowingly engaged in a scheme to manipulate the price of perpetual futures on Mango Markets.
During the closing arguments on April 17, Eisenberg’s legal team argued that he did not commit any crimes, but instead orchestrated a “successful and legal trading strategy” that resulted in gains of approximately $110 million. Prosecutors countered by suggesting that he had to lie to withdraw funds from Mango Markets, implying that fraud was part of his plan.
According to reporting from Inner City Press, Eisenberg’s attorney stated, “My client fully complied with the Mango Markets smart contracts. 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 returned $67 million worth of cryptocurrency to Mango Markets, but claimed that he had legally obtained the remaining funds.
“He had control of $110 million,” said the defense attorneys. “But he intended to return the funds. Maybe you wouldn’t have done it. But this is how people operate in the cryptocurrency world. He sent $67 million. What was retained were the profits.”
A verdict in the case could be reached as early as April 18. Reports suggest that if found guilty, Eisenberg could face up to 20 years in prison. He has been in custody since January 2023.
In addition to the criminal charges, Eisenberg is also facing civil action from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. Both cases have been put on hold until the conclusion of the criminal trial.
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