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Trial Of Alleged Mango Markets Crypto Criminal Begins
The long-awaited trial of alleged Mango Markets crypto criminal Avraham Eisenberg got underway as jury selection began in Manhattan federal court. Eisenberg is accused of stealing an estimated $110 million out of the crypto exchange Mango Markets by utilizing their cryptocurrency MNGO for fraud.
Charges Against Avraham Eisenberg
- Commodities fraud
- Commodities manipulation
- Wire fraud related to the cryptocurrency scheme
Prosecutors allege Eisenberg sold off a large number of Mango Markets’ signature cryptocurrency, MNGO, to himself before making “a series of large purchases” with the objective of artificially increasing the price of MNGO relative to USDC and, in turn, the price of MNGO Perpetuals on Mango Markets.
Eisenberg’s manipulative trading caused the price of MNGO Perpetuals on Mango Markets to rise approximately 1300% in a period of approximately 20 minutes.
Avraham Eisenberg’s Defense
Despite the criminal charges, Eisenberg claims his supposed crypto scheme was not outside the law, calling it a “highly profitable trading strategy.”
Following Mango Markets’ insolvency, Eisenberg said he “helped negotiate a settlement agreement” in hopes of making “all users whole as soon as possible as well as recapitalizing the exchange.”
Cracking Down On Crypto Crime
Eisenberg’s trial comes at a major moment for crypto policy and regulation following the stringent sentencing of FTX founder Sam Bankman-Fried. The Department of Justice (DOJ) has taken a proactive approach to addressing cryptocurrency-related issues.
“Exploiting decentralized finance platforms is the new frontier of old school financial crimes in which criminals abuse emerging technologies for their own personal gain,” Assistant Attorney General Kenneth A. Polite, Jr. said.
If convicted, Eisenberg faces a maximum penalty of forty years in prison.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
