A crypto trader named Avraham “Avi” Eisenberg was convicted by a New York jury in October 2022 for masterminding a deceitful scheme worth $110 million, which aimed to defraud the decentralized finance (DeFi) platform, Mango Markets.
Prosecutors claim that Eisenberg, using a fake name, is accused of manipulating the market for Mango’s token, MNGO, and associated contracts. By doing so, he reportedly inflated the price, taking advantage of an exchange feature to withdraw approximately $110 million in cryptocurrency without any plans to pay back.
Avi Eisenberg’s Manipulation Scheme Exposed
At the court hearing, it was disclosed that Eisenberg interfered with MNGO token prices to trick the system and gain unlawful profits. By pumping up the token’s worth artificially, Eisenberg aimed to commit a calculated deception against Mango Markets.
According to Assistant US Attorney Thomas Burnett, it is claimed that Eisenberg had the intention to make off with the funds, carefully orchestrating and carrying out the deceit.
After earning a large fortune, Eisenberg left Puerto Rico for Israel in a hurry around that time. However, when he went back to Puerto Rico on December 26, 2022, US law enforcement apprehended him. The judge deemed him a potential flight risk prior to his trial and kept him in custody since then.
Prosecution Clash In Mango Markets’ Fraud Trial
At the court hearing, lawyer Brian Klein for the defense explained that Eisenberg had followed a permitted trading technique within the stock exchange’s guidelines.
According to Klein, Eisenberg made deliberate moves while adhering to the rules set by the decentralized finance platform’s smart contracts. He also brought attention to the warning statement issued by the platform, reminding users that the software had not undergone an audit and carried inherent risks.
US Assistant Attorney Thomas Burnett responded to the defense’s claim by explaining that the regulations of the Mango Markets platform do not grant immunity to Eisenberg for alleged fraudulent and manipulative activities.
During the trial, Eisenberg abstained from testifying himself, yet he remained an engaged participant in his defense. He meticulously jotted down notes as the testimonies were given, and consistently offered suggestions for probing questions that his legal team could pose to the witnesses.
After Eisenberg’s verdict, the value of the MNGO token has significantly risen to $0.029. This marks an impressive 11.5% jump in just the previous 24 hours.
Over longer periods, the crypto market as a whole saw more modest growth, but MNGO stood out with a 69% increase over the last two weeks and a 46% surge over the past month. This strong performance suggests growing investor enthusiasm towards the token following the resolution of the Mango Markets protocol issue.
Although there have been some advances lately, the MNGO token is still far from reaching its previous highest point of $0.49, which was hit in September 2021. This represents a substantial drop of 94% from that peak price.
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2024-04-19 10:16