Avraham “Avi” Eisenberg, the individual responsible for a $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 after hours of deliberation following closing arguments on April 17.
Throughout the two-week trial, Eisenberg’s legal team argued that he had not committed any crimes but rather executed a “successful and legal trading strategy” that resulted in approximately $110 million from Mango Markets. After the exploit, he returned around $67 million of the funds but kept over $40 million following a community governance vote. Prosecutors, however, contended that Eisenberg’s actions constituted fraud.
The sentencing for Eisenberg, who now faces a maximum of 20 years in prison, is yet to be determined by Judge Richard Berman. Eisenberg was arrested in Puerto Rico in December 2022 and has been in U.S. custody since January 2023.
Following the conclusion of the criminal trial, Eisenberg is expected to face civil enforcement actions filed by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission in 2023. Both cases had been put on hold and could resume two weeks after the criminal case’s conclusion.
In addition to Eisenberg’s case, there are several ongoing criminal cases involving prominent figures in the crypto space. In March, former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison after being convicted on seven felony charges, though his lawyers have filed an intention to appeal. Former Binance CEO Changpeng Zhao is scheduled to be sentenced on April 30 after pleading guilty to one felony charge.
In related news, it has been reported that Alex Mashinsky, who is considered to be less flashy than Sam Bankman-Fried, is expected to receive a shorter prison sentence.