Avraham Eisenberg, the man behind the $116 million Mango Market exploiter, has received an extension to his trial dates after a long legal battle between the government prosecutors and his defense lawyers.
As the legal peril facing Eisenberg widened, his lawyers requested the court to extend fraud trial dates. The lawyer explained the legal challenges they faced while preparing for the upcoming fraud trial.
Court Prolongs Mango Market Exploiter Fraud Case
They argued that following the extradition of Eisenberg from Puerto Rico to the Metropolitan Detention Center (MDC) in Brooklyn they were unable to reach their client as earlier planned. The lawyers referred to Eisenberg’s deportation as unexpected since it complicated the preparation for the trial.
Also, the lawyers admitted that the government prosecutors had numerous evidence against the 27-year-old crypto trader. Based on the complexity of the fraud case, the lawyers presented a motion before Judge Arun Subramanian requesting an extension of the trial dates.
The lawyers requested the court to give them more time to review the voluminous evidence presented by the prosecutors. They confessed that the review process has already started and is conducted on a rolling basis.
Additionally, the defense team regretted that the unplanned extradition of their client was time-consuming and interfered with their evidence-gathering process. Before Eisenberg’s transfer, the lawyers complained that they were restricted from sharing the critical discovery material concerning their clients.
Initially, the troubled crypto trader had annotated the discovery material and other legal documents, providing substantial evidence concerning his case. Also, the lawyers lamented the Eisenberg deportation to Brooklyn restricted them from engaging their client.
Avraham Eisenberg’s Defense Lawyers Encounter Challenges in Gathering Evidence
The motion created heated exchanges between the government prosecutors and Eisenberg lawyers. The prosecutor requested the court to continue with the case and follow the existing laws.
On November 2, the lawyers led by Brian Klein convinced the court of the need to reschedule Eisenberg’s fraud trial. The lawyers outlined the unavoidable circumstances that required a thorough trial preparation.
This request was opposed by the government prosecutors who had requested the court to oversee Eisenberg’s case for justice to be served. In his earlier arraignment, the disgraced crypto investor, was charged with three criminal offenses, including commodities fraud, wire fraud, and conspiring commodity manipulation.
The court report illustrates that Eisenberg was the mastermind behind the October 2022 Mango Markets exploit that exposed the customers to losing assets worth around $116 million. Report indicates that Eisenberg’s susceptible action resulted in the violation of the US Securities and Exchange Commission laws.
Mango Market Exploiter Faces Three Charges
In January, the SEC accused Eisenberg of manipulating the governance token MNGO on the Mango Market. The market regulators noted that Eisenberg borrowed a measurable amount of assets from Mango Markets.
The SEC observed that Eisenberg’s loan failed to meet the inflated collateral requirements, exposing the customers to financial losses. In June, Eisenberg pleaded not guilty to three charges. During his arraignment, the alleged market manipulator confessed to being part of a team that implemented a highly profitable trading strategy.
He revealed his actions legally abided despite failing to meet the development team’s requirements. According to the court report, the troubled crypto investor was reported to return $67 million to Mango Market as per the bounty agreement. In January, the Mango Market team filed a lawsuit against Eisenberg for $47 million in damages.