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Avraham ‘Avi’ Eisenberg, a figure in the digital finance sector, was found guilty in relation to a major security breach at Mango Markets, where over $110 million was compromised. 
In <a href="https://crypto.news/us-authorities-charges-mango-market-exploiter-with-fraud/" data-type="link" data-id="https://crypto.news/us-authorities-charges-mango-market-exploiter-with-fraud/" rel="">December 2022</a>, Eisenberg was arrested in Puerto Rico, facing charges of commodities fraud, market manipulation, and wire fraud linked to the Mango Markets exploit. The incident occurred in <a href="https://crypto.news/mango-markets-loses-more-than-100-million-in-a-malicious-price-manipulation-hack/" data-type="link" data-id="https://crypto.news/mango-markets-loses-more-than-100-million-in-a-malicious-price-manipulation-hack/" rel="">October 2022</a> when Eisenberg injected $5 million of USDC <a href="https://crypto.news/tag/stablecoins/" data-type="link" data-id="https://crypto.news/tag/stablecoins/" rel="">stablecoin</a> into Mango Markets. 
According to court findings, Eisenberg manipulated the price of MNGO, the platform’s token, causing it to surge approximately 1,000% in one hour. The artificial increase allowed him to borrow and withdraw additional tokens, creating a significant negative debt position for the platform. 
A few days after the exploit, Eisenberg claimed that his actions were part of a legal, highly profitable trading strategy, utilizing the platform’s features as intended. He later returned $67 million to <a href="https://crypto.news/tag/mango-markets/" data-type="link" data-id="https://crypto.news/tag/mango-markets/" rel="">Mango Markets</a>, retaining $47 million as per a community <a href="https://crypto.news/mango-dao-votes-to-allow-the-hacker-keep-47-million-as-bug-bounty/" data-type="link" data-id="https://crypto.news/mango-dao-votes-to-allow-the-hacker-keep-47-million-as-bug-bounty/" rel="">governance vote</a>. 
 You might also like: <a href="https://crypto.news/tether-to-restructure-expand-beyond-stablecoin-sector/" rel=""> Tether to restructure, expand beyond stablecoin sector </a> 
The trial, which started on April 9, spanned just over a week. In court, his defense maintained that Eisenberg employed a legal trading strategy, however, prosecutors branded his actions as fraudulent, according to <a href="https://www.bloomberg.com/news/articles/2024-04-12/crypto-trader-searched-web-for-fraud-before-110-million-haul" data-type="link" data-id="https://www.bloomberg.com/news/articles/2024-04-12/crypto-trader-searched-web-for-fraud-before-110-million-haul" target="_blank" rel="">Bloomberg</a>. 
During the trial, a U.K. customer testified about being unable to withdraw funds, losing $124,000. 
“That’s not how DAOs work. There’s no one to speak to,” the customer <a href="https://www.innercitypress.com/sdny19cryptoeisenbergicp040824.html" target="_blank" rel="">stated</a>, reflecting the decentralized core of such platforms. 
Bloomberg also revealed that jurors saw evidence of Eisenberg searching online for market manipulation criminal and FBI surveillance terms. Mango Markets ultimately suffered a loss of around $116 million due to the exploit. 
The price of MNGO is currently up 14% in the past 24 hours and sits at $0.0289, according to <a href="https://www.coingecko.com/en/coins/mango" data-type="link" data-id="https://www.coingecko.com/en/coins/mango" target="_blank" rel="">CoinGecko</a>. 
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 Read more: <a href="https://crypto.news/bitcoin-network-fees-skyrocket-amid-upcoming-halving/" rel=""> Bitcoin network fees skyrocket amid upcoming halving </a>

Avraham Eisenberg convicted in $110m Mango Markets exploit

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