A federal jury in the Southern District of New York reached a verdict: Avraham ‘Avi’ Eisenberg participated in an $110 million scam on the decentralized cryptocurrency exchange, Mango Markets.
Following two days of careful consideration, the jury announced their decision: Eisenberg was found guilty of various charges including wire fraud, commodities fraud, and manipulating commodities, an incident that took place on October 11, 2022. This occurrence significantly disrupted the digital asset platform.
Details of the Exploit
The prosecution explained that Eisenberg executed a carefully thought-out attack on Mango Markets. He transferred large sums of USDC stablecoin onto the platform, which he later used to magnify his holdings in MANGO, the platform’s native token. This action led to a significant increase in MANGO’s price – over 1000% within an hour – that was not based on genuine market demand.
After a significant surge in value during the night, Eisenberg was able to borrow substantial amounts using his enhanced asset worth as collateral, and withdrew a large quantity of digital tokens from the platform.
Eisenberg’s Defense and Trial Testimonies
During the court proceedings, his lawyers argued that his behavior aligned with the acceptable trading behaviors on Mango Markets. They maintained that the design and functions of the platform permitted such actions, making them lawful rather than manipulations or deceit. However, testimonies from harmed users and complex financial evaluations presented a contrasting perspective, revealing devastating impacts on smaller investors and market stability as a whole.
At the trial, individuals who had been taken advantage of recounted their experiences. Among them was a British client who unfortunately lost $124,000 due to his inability to access his funds during market turbulence.
In this account, the impact on Mango Markets’ clients who were unable to retrieve their digital assets was underscored. The court took into consideration the fact that Eisenberg had looked into relevant market manipulation and criminal investigation concepts prior to executing his plan.
Sentencing and Regulatory Implications
After being found guilty, Avraham Eisenberg faces a potential prison term of up to 20 years, with the sentencing scheduled for July 29, 2024. This high-profile case represents a significant milestone in U.S. legal history concerning the manipulation of cryptocurrency markets.
Furthermore, the court decision permits regulatory bodies like the SEC and CFTC in the US to pursue civil actions against the involved parties. These agencies had put their investigations on hold awaiting the trial result.
Nvidia’s Top Producer Expands AI Chip Capacity Amid Demand
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- BICO PREDICTION. BICO cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD ZAR PREDICTION
- VANRY PREDICTION. VANRY cryptocurrency
- USD CLP PREDICTION
- EUR RUB PREDICTION
- SBR PREDICTION. SBR cryptocurrency
- KATA PREDICTION. KATA cryptocurrency
2024-04-18 21:38