Trial of Avraham Eisenberg, Accused Mango Markets Hacker, Goes to Jury

The decision regarding Avraham Eisenberg, implicated in the $110 million Mango Markets heist, now rests with a jury of twelve in New York.

Avraham Eisenberg’s Fate in Jury’s Hands

Bloomberg coverage indicates the federal jury is charged with determining if Eisenberg engaged in fraudulent manipulation of the Mango Markets or if his actions were within the platform’s legal boundaries, following the government’s closing arguments on Wednesday.

Defense arguments proceeded on Monday and Tuesday, with Eisenberg’s mother and family present, yet the defendant himself did not testify, contrary to prior suggestions from his legal team.

The defense largely relied on the insights of expert witness Jeremy Sheridan, an ex-Secret Service agent now specializing in cryptocurrency investigations. Sheridan’s discourse primarily delved into the trade mechanisms Eisenberg used and the complexities in defining Eisenberg’s actions within Mango Markets’ codebase definitions.

Regrettably, a large portion of Sheridan’s testimony was dismissed by the court due to his inadequate grasp of the Mango Markets codebase particulars.

A $110M Scheme Unfolds at Mango Markets

Following his December 2022 arrest in Puerto Rico, two months subsequent to the Mango Markets compromise, Eisenberg was identified.

He supposedly inflated his collateral’s value temporarily before withdrawing substantial loans from Mango’s treasury.

Charges against him include commodities fraud, commodities manipulation, and wire fraud linked to his activities on Mango Markets.

After the Commodity Futures Trading Commission (CFTC) filed a lawsuit against him for swap manipulation and deceptive price influence of the MNGO token, Eisenberg consented to return $67 million of the proceeds. Nevertheless, Mango Labs pursued the remaining funds leading to further legal action against the trader.

Additionally, Eisenberg faced allegations regarding attacks on other protocols. Mango Markets proclaimed,

“Post-attack, the defendant openly planned further strikes against Mango Markets and used the misappropriated assets to compromise other cryptocurrency protocols.”