Federal prosecutors in the United States are advocating for a prison sentence of up to 6.5 years for Avraham “Avi” Eisenberg. He was found guilty of his involvement in a $110 million exploit of the decentralized exchange Mango Markets in 2022.
In a court filing dated April 22, the prosecution urged Judge Arun Subramanian to impose a sentence ranging from 78 to 97 months ahead of Eisenberg’s sentencing set for May 1.
Eisenberg was convicted in April 2024 on multiple charges, including wire fraud, commodities fraud, and market manipulation in connection with the attack on Mango Markets.
Additionally, he is contending with separate charges involving possession of child pornography, which the prosecutors assert contributes to the justification for a lengthy prison term.
Prosecutors Emphasize the Impact of the $100 Million Fraud
The filing highlighted the serious implications of Eisenberg’s actions, specifying that his fraudulent scheme not only resulted in the loss of over $100 million for investors but also compelled Mango Markets to cease operations.
“This sentence is necessary to reflect the gravity of the defendant’s crimes, deter future misconduct, and protect the public,” the filing stated.
Mango Markets, which began operations in August 2021, announced in January 2024 that it would shut down due to the lasting repercussions of the exploit, officially closing its doors on February 3.
Mango Markets Shutdown Update
Mango is closing on February 3rd, 2025
We ask all users to close their positions before this time to avoid liquidation and penalty fees
The range of liquidation fees can be found here: https://t.co/SdefuLCCAj
— Mango (@mangomarkets) January 18, 2025
During the trial, Eisenberg’s defense argued that his actions constituted a legitimate trading strategy.
While he returned roughly $67 million to the platform following a community vote, he retained over $40 million from the exploit.
A victim impact statement submitted by Mango Markets requested $47 million in restitution, emphasizing the importance of restoring financial stability to those affected by Eisenberg’s actions.
“No amount of money will repair the reputational harm or the suffering inflicted, but restitution will help make the community whole,” the statement remarked.
Eisenberg was arrested in December 2022, and his sentencing has faced numerous postponements due to what his legal team characterized as complex legal considerations.
Initially scheduled for late 2024, the hearing has been delayed multiple times before being rescheduled for May 2025.
If the court agrees with the prosecution’s recommendations, Eisenberg may receive one of the most severe sentences imposed for a decentralized finance (DeFi)-related exploit to date.
Details of Eisenberg’s Manipulation of Mango Markets
The Mango Markets platform fell victim to an attack on October 11, 2022, leading to the theft of approximately $110 million from its treasury.
Following the incident, Avraham Eisenberg confessed to being the attacker, framing the exploit as a “highly profitable trading strategy” conducted legally within the protocol’s intended framework.
Prosecutors allege that Eisenberg manipulated futures contracts tied to the values of Mango’s token MNGO and the stablecoin USD Coin using two separate accounts.
In addition to the fraud charges, Eisenberg has also been confronted with charges of possessing child pornography.
Earlier court documents revealed that incriminating images were found on his cell phones and laptops during a search that was part of the market manipulation investigation.
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