A federal jury in Manhattan has found a cryptocurrency trader guilty of orchestrating a $110 million fraud on Mango Markets, a decentralized exchange. The trader illegally boosted the value of the platform’s tokens and subsequently borrowed against this inflated valuation to extract vast sums from the exchange.
The verdict was delivered against Avraham Eisenberg, a 28-year-old resident of Puerto Rico, convicting him on charges of commodities fraud, commodity manipulation, and wire fraud. The trial, presided over by U.S. District Judge Arun Subramanian, began on April 9 and concluded with a decision after approximately five hours of jury deliberations spread over two days.
Eisenberg was arrested in late 2022 and has been in custody since. His sentencing is scheduled for July 29. During the fall of 2022, Eisenberg executed trades that artificially inflated the value of MNGO tokens, then withdrew nearly all of this value by borrowing against the artificially high collateral, as stated by the Manhattan U.S. attorney’s office.
