In Thursday’s court hearing, the Manhattan jury found the renowned crypto trader Avraham Eisenberg guilty of engaging in manipulative practices while overseeing the operation of Mango Markets.
The court claimed that Mr Eisenberg manipulated the prices on the Mango Market in 2022. Eisenberg’s unlawful activities impacted the loss of nearly $110 million in cryptos.
The disgraced crypto trader was charged with engaging in commodities and wire fraud that exposed hundreds of Mango users to huge losses.
Crypto Trader Avraham Eisenberg Found Guilty for His Involvement in Mango Market Saga
During the court procession, Judge Arun Subramanian scheduled Eisenberg’s sentencing for July 29. Guided by the existing law, the crypto trader might receive 20 years imprisonment for all crimes he committed.
A statement from the US attorney of the Southern District Court, Damian Williams, stated that the ruling was just. He was pleased to note that the court leverages cutting-edge law enforcement tools and advanced technologies to shield the financial sector from exploitative practices.
The attorney warned criminals looming over the financial sector to reconsider their decision since the law enforcers are advancing their skills and expertise to safeguard this industry.
He recognized the commendable efforts made by prosecutors in acquiring more knowledge in their field to convict criminals causing harm to the financial sector. The conviction of Eisenberg will serve as a lesson to individuals planning to commit financial fraud.
Law Enforcers Pledge to Address Financial Fraud
A court document demonstrated that the legal team representing Eisenberg described their client’s participation in Mango Markets as successful and legal. The defense team claimed Eisenberg had complied with the regulation governing decentralized platforms when the heist occurred.
After a lengthy court proceeding, the defense team’s efforts to protect the interest of their client were in vain after the jury ruled in favor of the prosecutor. The defense team led by Brian Klein convinced the court that their client was committed to complying with the law.
The jury claimed that Eisenberg’s actions were brazen fraud and manipulative. In response to the defense team, the jury backed their claims with substantial evidence illustrating that Eisenberg engaged in fraud and manipulative practices.
The prosecutors claimed Eisenberg fled to Israel after the Mango Market saga was uncovered. Before then, the internet searches on Eisenberg gadget, demonstrated that the trader had made numerous attempts to manipulate the market.
The defense team vowed to fight for the interest of the client. Klein expressed disappointment with the court ruling and revealed his intent to file for several post-trial motions.
Mango Market Exploit
The conviction of Eisenberg came days after the court had sentenced the former FTX boss Sam Bankman Fried. According to the jury, Eisenberg completed three major MNGO perpetual futures trades, which increased the token’s price by 1000%.
Eisenberg reaped a considerable profit from three trades, which boosted his credit scores. The court noted that he borrowed $110 million of crypto assets using his newly acquired collateral.
Hours after borrowing the funds, Eisenberg the Mango Market was hit by an attack. The court argued that Eisenberg was not borrowing funds but stealing from the platform. The jury claimed that Eisenberg had proposed to return $67 million of his ill-gained profit to Mango Market DAO and retain the remaining $43 million to prevent facing legal charges.
