The jury has found Avraham “Avi” Eisenberg guilty of fraud and market manipulation in the $117 million Mango Markets hack.
A panel of jurors rendered their verdict on April 18 in the United States District Court for the Southern District of New York, finding Eisenberg guilty of wire fraud, commodities fraud, and commodities manipulation. Hours of deliberation ensued following the conclusion of closing arguments on April 17.
Amidst a two-week trial, Eisenberg’s legal team maintained that his conduct was a “successful and lawful trading strategy,” which generated an estimated $110 million from Mango Markets and that he did not commit any felonies.
Following the investigation, he reimbursed approximately $67 million of the funds, but after a community referendum on governance, he retained over $40 million. According to the prosecution, Eisenberg’s conduct amounted to deceit.
The potential date of Judge Richard Berman’s sentencing decision for Eisenberg, who is currently facing a maximum of 20 years in prison, is unknown.
Following his October 2022 actions at Mango Markets, Eisenberg was apprehended in Puerto Rico in December and detained in the United States since January 2023.
In 2023, the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission are likely to initiate civil enforcement proceedings against Eisenberg, pending the outcome of the criminal trial. The stay of both proceedings allowed for their resumption two weeks after the resolution of the criminal case.
Multiple criminal cases are pending in the United States against prominent figures in the cryptocurrency industry. In March, a judge imposed a 25-year prison term on former FTX CEO Sam Bankman-Fried concerning his conviction on seven felonies.
However, his attorneys have already provided notice that they have the intention to submit an appeal. April 30 is the scheduled sentencing of former Binance CEO Changpeng Zhao, who pleaded guilty to a single felony charge.
