Key Takeaways:
- A federal choose overturned Avraham Eisenberg’s fraud and manipulation convictions within the $110M Mango Markets case.
- The courtroom accepted Eisenberg’s protection that he used flawed however authorized sensible contract mechanics relatively than committing fraud.
- Regardless of the ruling, Eisenberg stays in jail on little one pornography costs.
A US federal choose has thrown out main convictions in opposition to Avraham Eisenberg, the person accused of exploiting decentralized change Mango Markets for $110 million.
On Friday, Decide Arun Subramanian vacated Eisenberg’s convictions for commodities fraud and market manipulation, stating that prosecutors didn’t show he made materially false representations.
The courtroom additionally acquitted Eisenberg of a 3rd cost, leaving the federal government’s case considerably weakened.
Eisenberg Used Token Pump to Drain $110M from Mango
Eisenberg had been discovered responsible in April 2024 after a jury concluded he manipulated Mango’s MNGO token worth by over 1,300% inside minutes.
He then used the inflated worth as collateral to empty the protocol of $110 million in crypto.
Whereas the Division of Justice framed the act as a calculated deception of a wise contract system, Eisenberg’s protection insisted he merely took benefit of flawed however open code — with out mendacity or deceptive the protocol.
Decide Subramanian sided with this view, noting that the platform was “permissionless and automated,” making it tough to determine a authorized foundation for fraud. “There was inadequate proof of falsity,” he wrote.
All the pieces we've been instructed about "Code is Regulation" protection not standing an opportunity in courtroom has been a lie. Mango Markets / Avi Eisenberg costs simply been dropped by a federal cost.
The identical logic used to dismiss the case can be utilized for just about any permissionless DeFi… pic.twitter.com/yWIUnmAUxX— Belief (@trust__90) Might 24, 2025
The ruling additionally rejected New York as the correct venue for the trial.
Eisenberg was primarily based in Puerto Rico throughout the trades, and the choose dismissed the DOJ’s makes an attempt to tie the case to the state via a Mango consumer in Poughkeepsie and a third-party service supplier in Manhattan.
The vacated costs now depart the Justice Division to determine whether or not to pursue the case once more.
Nevertheless, latest alerts from the Trump administration recommend a cooling stance on crypto-related enforcement.
Eisenberg Stays in Jail for Baby Pornography Possession
Regardless of the courtroom win, Eisenberg stays in federal custody. Earlier this month, he was sentenced to almost 4 years in jail on an unrelated cost of kid pornography possession, primarily based on proof discovered throughout his 2022 arrest in Puerto Rico.
Eisenberg nonetheless faces separate civil circumstances introduced by the SEC and CFTC.
On October 11, 2022, Mango Markets was the sufferer of an assault during which roughly $110 million was drained from its treasury.
Shortly after the assault, Avraham Eisenberg got here ahead because the perpetrator, asserting that the exploit was merely a “extremely worthwhile buying and selling technique” and claiming it was carried out inside the bounds of legality and the protocol’s meant design.
Based on prosecutors, Eisenberg utilized two accounts to interact in manipulative buying and selling involving futures contracts tied to the values of Mango’s token MNGO and the stablecoin USD Coin.
Final month, US federal prosecutors requested for a jail sentence of as much as 6.5 years for Eisenberg.
Of their submitting, prosecutors emphasised the severity of Eisenberg’s actions, stating that his scheme not solely defrauded traders of over $100 million but additionally pressured Mango Markets to close down.
The put up Decide Overturns Key Convictions in $110M Mango Markets Crypto Case appeared first on Cryptonews.