Prosecutors from the United States Southern District of New York (SDNY) have filed a motion on September 18 opposing the request for acquittal or a new trial made by Avraham Eisenberg, the exploiter of Mango Markets.
According to the documents filed by SDNY attorneys, Eisenberg was correctly convicted by the jury after considering a substantial amount of evidence, starting with the prosecution’s claim that Mango perpetual swaps are subject to the Commodities Exchange Act.
The federal prosecutors emphasized that Eisenberg’s defense, which argued that the fraud charges did not apply because he did not intend to manipulate the market price of the underlying asset, was fundamentally incorrect. They also highlighted the jury instructions on price manipulation. Attorneys for the Southern District of New York stated:
Finally, the SDNY prosecutors dismissed the defense’s challenge to jurisdiction, asserting that since most of Mango Markets’ key employees reside in Manhattan, the Southern District of New York had the authority to try the case.
(Source: Court Listener)
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The ongoing story of the Mango Markets hacker
Mango Markets experienced a security breach in October 2022, resulting in a $100 million loss from the platform and a 52% drop in the value of the Mango token (MNGO) within 24 hours. Following the high-profile attack, the Mango Markets team confirmed that the breach was due to an exploit of a price oracle.
Eisenberg later admitted to being the hacker in a social media thread and defended the exploit as “legal open market actions,” which his legal counsel later argued during the trial.
Two months later, in December 2022, Eisenberg was arrested in Puerto Rico and subsequently charged with fraud and market manipulation by the Federal Bureau of Investigation.
In April 2024, the Mango Markets exploiter was found guilty of fraud and market manipulation, and could potentially face a maximum prison sentence of 20 years, depending on the judge’s decision.
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