Federal Jury Finds Avraham Eisenberg Guilty of Commodities Fraud and Manipulation
Federal jurors in New York have found Avraham Eisenberg guilty of commodities fraud, commodities manipulation, and wire fraud for his actions on Oct. 11, 2022. Eisenberg, a self-described “applied game theorist,” manipulated the price of futures contracts by 1,300% in just 20 minutes, leading to significant financial gains for himself.
Prosecutors revealed that Eisenberg traded under a false identity and inflated the price of Mango’s token, MNGO, as well as contracts based on its value compared to the stablecoin USDC. By exploiting a loophole in the exchange, Eisenberg managed to withdraw $110 million in cryptocurrencies that he had no intention of repaying.
The scheme involved pumping up the price of MNGO tokens to execute a fraud against Mango Markets, a decentralized finance platform. Assistant US Attorney Thomas Burnett stated that Eisenberg manipulated the price to deceive the system into giving him money, ultimately planning to abscond with the funds.
Despite his attorney Brian Klein arguing that Eisenberg’s actions were legal and compliant with the exchange’s rules, prosecutors maintained that the manipulation and fraud were not protected under the platform’s regulations. Eisenberg’s attempt to evade prosecution by fleeing to Israel was short-lived, as he was arrested upon his return to Puerto Rico.
The sentencing for Eisenberg is scheduled for July 29, where he faces the consequences of his fraudulent activities. The case highlights the risks and consequences of engaging in illegal trading practices within the cryptocurrency market. Stay tuned for more updates on this developing story.
