Jury deliberation commences as trial of Mango Markets exploiter comes to a close

The jury has commenced deliberations regarding charges of market manipulation and fraud in connection with an alleged $110 million exploit of the Mango Markets decentralized exchange by Avraham “Avi” Eisenberg.
On April 17, Judge Richard Berman of the United States District Court for the Southern District of New York dismissed the jury for the day after the closing arguments by the prosecutors and defense attorneys. The jury will resume deliberations tomorrow to determine whether Eisenberg is guilty of commodities fraud and commodities manipulation after a two-week trial.
In October 2022, Eisenberg supposedly executed a series of significant purchases on Mango Markets to artificially increase the price of the token in relation to USD Coin (USDC), and subsequently withdrew the assets from the platform. Eisenberg was arrested in Puerto Rico by U.S. authorities in December 2022, who alleged that he willingly and knowingly engaged in a scheme to manipulate the price of perpetual futures on Mango Markets.
During the closing arguments on April 17, Eisenberg’s legal team contended that he did not commit any crimes, but rather orchestrated a “successful and legal trading strategy” that resulted in approximately $110 million in profits. Prosecutors asserted that he “had to lie” in order to withdraw funds from Mango Markets, suggesting that fraud was a part of his plan.
According to Inner City Press, Eisenberg’s attorney stated, “My client […] fully complied with the Mango Markets smart contracts. He withdrew his own capital. It wasn’t a borrow. And the rest of the money? He returned shortly afterward. They called Avi brazen. That’s not a crime. He didn’t hack into Mango Markets.”
Following the exploit, Eisenberg returned $67 million worth of crypto to Mango Markets, but claimed that he had legally obtained the remaining funds.
“He had control of $110 million,” said the defense attorneys. “But he was seeking to return the funds. Maybe you wouldn’t have done it. But this is how people do it in this world of cryptocurrency. He sent $67 million. What was kept were the profits.”
There is a possibility that the jury could render a verdict in the case as early as April 18. Reports have indicated that if found guilty, Eisenberg could face a maximum of 20 years in prison. He has been in custody since January 2023.
In addition to the criminal charges, Eisenberg is also facing civil action from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. Both cases have been put on hold until the conclusion of the criminal trial.