Crypto dealer Avraham “Avi” Eisenberg was discovered responsible by a Manhattan jury in October 2022 of orchestrating a $110 million fraud scheme focusing on the decentralized finance (DeFi) protocol, Mango Markets.
In accordance with prosecutors, Eisenberg, working underneath a false id, allegedly engaged in market manipulation to drive up the value of Mango’s token, MNGO, and associated contracts, in the end exploiting an alternate function to withdraw $110 million in cryptocurrency with no intention of reimbursement.
Avi Eisenberg’s Manipulation Scheme Uncovered
In the course of the trial, prosecutors revealed that Eisenberg manipulated the value of MNGO tokens to deceive the system and purchase illicit funds. By “artificially inflating” the token’s worth, Eisenberg allegedly sought to perpetrate a deliberate fraud in opposition to Mango Markets.
Assistant US Legal professional Thomas Burnett emphasised Eisenberg’s intent to “take the cash and run,” alleging that he meticulously deliberate and executed the fraud.
Shortly after his vital monetary achieve, Eisenberg fled to Israel from Puerto Rico, the place he resided. Nevertheless, upon his return to Puerto Rico on December 26, 2022, US authorities arrested him. Eisenberg has remained in custody since then, as a decide deemed him a flight danger forward of his trial.
Prosecution Conflict In Mango Markets’ Fraud Trial
In the course of the trial, Eisenberg’s protection legal professional, Brian Klein, argued that his shopper had executed a authorized buying and selling technique inside the alternate’s guidelines.
Klein contended that Eisenberg had taken calculated dangers inside the confines of the sensible contracts governing the decentralized finance platform. Moreover, he highlighted the platform’s disclaimer that warned customers of the software program’s unaudited nature and related dangers.
Assistant US Legal professional Thomas Burnett countered the protection’s argument, stating that the foundations of the Mango Markets platform didn’t defend Eisenberg from prosecution for fraud and manipulation.
Eisenberg didn’t testify through the trial, however he performed an lively function in his protection, taking notes all through the testimony and regularly suggesting questions for his attorneys to ask the witnesses.
Following Eisenberg’s conviction, the value of the MNGO token has skilled a notable surge, reaching $0.029. This represents a notable 11.5% improve inside the previous 24 hours alone.
In broader timeframes, contrasting the efficiency of the general cryptocurrency market, MNGO has demonstrated vital positive aspects of 69% and 46% over the previous fourteen and thirty days, respectively. These figures point out a renewed curiosity within the token after the exploit of the Mango Markets protocol.
Nevertheless, regardless of these latest positive aspects, the MNGO token stays considerably beneath its all-time excessive of $0.49, achieved in September 2021. The present worth displays a decline of 94% from that peak degree.
Featured picture from Shutterstock, chart from TradingView.com