Avraham Eisenberg’s Mango Markets trial concludes with Eisenberg being found guilty of commodities fraud, commodities market manipulation, and wire fraud.
According to prosecutors, the accused, Avraham Eisenberg, manipulated the market on October 11, 2022, by drastically increasing the value of certain swaps by 1300% within a mere 20 minutes. Following this surge, he allegedly used anonymous accounts to take loans against the artificially inflated contracts and then fleed with the funds. However, Sanford Talkin, Eisenberg's attorney, countered that Eisenberg's actions were within the bounds of the unconventional norms governing the cryptocurrency sector, highlighting that traders in this market often do not need to disclose personal details, prove their creditworthiness, or confirm their intent to repay borrowed sums.
Eisenberg’s defense relied on the notion that the accused traded within the Mango Market’s smart contract parameters and simply employed a high-risk, high-reward strategy, which resulted in a significant payoff for the trader.
On the other hand, the prosecution argued that Eisenberg committed a so-called ‘Flash Loan Attack.’ This typically includes borrowing non-collateral funds, which are used to significantly increase the price of an asset by buying up exorbitant amounts and then offloading the bought asset. The perpetrator then pays off the initial loan and profits from the remainder of the funds received for offloading the asset.
Eisenberg is set for sentencing on July 29, 2024. He could potentially be facing a 30-year-long sentence for the crimes. U.S. Attorney Damian Williams stated that the jury’s guilty verdict was unanimous.
