Crypto Trader Eisenberg Convicted of Fraud in $110 Million Mango Markets Scheme

A jury found Avraham "Avi" Eisenberg guilty on all three counts of fraud and manipulation in a $110 million crypto trade scheme using the Mango Markets platform. Axios: The case was the first known test for a jury to decide whether existing U.S. laws governing fraud and market manipulation apply to the world of decentralized finance (DeFi). The 28-year-old Eisenberg will be held to account for his actions on Oct. 11, 2022, when a series of trades he made intentionally boosted the price of Mango Markets' native token, MNGO, as well as the price of futures contracts. He used the inflated futures holdings as collateral to borrow other cryptocurrencies on the platform, then quickly withdrew those assets and walked away from his collateral. Eisenberg never disputed the facts of the strategy but contended that what he did was legal and permitted by the DeFi protocol, a principle in the industry known as "code is law." U.S. laws apply to DeFi: "Avraham Eisenberg ran a con," prosecutors said Wednesday, during closing arguments, continuing its momentum from last week. The word "con" was used at least six more times in those remarks.

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