A US federal judge has overturned key fraud convictions against trader Avraham Eisenberg, who is at the center of the high-profile case involving the exploit of decentralized exchange Mango Markets.
Court Ruling
On Friday, US District Judge Arun Subramanian ruled that the evidence presented at trial failed to support the jury’s conclusion that Eisenberg made materially false representations to Mango Markets. This decision vacates Eisenberg’s convictions for commodities fraud and market manipulation.
Specific Charges
Eisenberg, a self-proclaimed 'applied game theorist,' was convicted in 2024 for artificially inflating the price of Mango’s MNGO token by over 1,300% in a matter of minutes and using the resulting gains as collateral to withdraw $110 million in crypto assets from the platform. The judge noted that the Mango Markets system was permissionless and thereby could not be deceived.
Additional Charges Against Eisenberg
Despite this ruling, Eisenberg still faces civil suits from both the SEC and CFTC. In a separate case, he was sentenced to nearly four years in prison for possession of child pornography, a charge stemming from evidence uncovered during his arrest in Puerto Rico.
The court's decision significantly weakens the government's case against Eisenberg, yet he remains in custody due to charges related to other crimes.
