Avraham “Avi” Eisenberg, the individual behind the $110 million exploit of the decentralized exchange Mango Markets, has been found guilty of fraud and market manipulation by a jury. The verdict was delivered on April 18 in the United States District Court for the Southern District of New York, following extensive deliberations that took place after closing arguments on April 17.
Throughout the two-week trial, Eisenberg’s legal team maintained his innocence, asserting that his actions constituted a “successful and legal trading strategy” that resulted in approximately $110 million from Mango Markets. While he did return around $67 million of the funds after the exploit, he kept more than $40 million following a community governance vote. However, prosecutors argued that Eisenberg’s actions were fraudulent.
The sentencing for Eisenberg is yet to be determined by Judge Richard Berman, but he could face a maximum of 20 years in prison. Eisenberg was arrested in Puerto Rico in December 2022 for his actions on Mango Markets and has been in U.S. custody since January 2023.
Following the conclusion of the criminal trial, it is expected that Eisenberg will face civil enforcement actions from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission in 2023. Both cases were put on hold and will likely resume two weeks after the criminal case’s conclusion.
It is worth noting that U.S. authorities have multiple ongoing criminal cases involving prominent figures in the cryptocurrency industry. In March, former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison for seven felony charges, although his lawyers have filed an intention to appeal. Former Binance CEO Changpeng Zhao is set to be sentenced on April 30 after pleading guilty to one felony charge.
In relation to these developments, according to Inner City Press and X Hall of Flame, it is anticipated that Alex Mashinsky, who is considered to be “less flashy,” will receive a shorter prison sentence compared to Sam Bankman-Fried.