A U.S. choose has overturned the fraud and market manipulation convictions of Avraham Eisenberg, the crypto dealer accused of draining $110 million from the now-defunct decentralized finance protocol Mango Markets.
On Friday, U.S. District Choose Arun Subramanian dominated that prosecutors did not show Eisenberg made false representations to the platform.
He additionally moved to acquit Eisenberg of wire fraud costs. The investor manipulated the value of Mango’s native token MNGO with huge trades by greater than 1,000% in 20 minutes earlier than getting the protocol to permit him to borrow and withdraw $110 million in numerous cryptocurrencies, backed by the inflated collateral.
Eisenberg’s protection argued that the platform, which operated by means of sensible contracts, allowed anybody to transact freely and that he merely exploited a vulnerability. The choose agreed, stating that Mango’s permissionless construction meant that there “was inadequate proof of falsity” from prosecutors relating to Eisenberg’s illustration to Mango Markets.
Eisenberg was arrested in December 2022, and whereas this case collapsed, he’s nonetheless at the moment serving a four-year sentence handed out after he pleaded responsible to the possession of kid sexual abuse materials.
“From the start, we stated this case was fatally flawed,” his legal professional Brian Klein of Waymaker LLP stated. “We’re more than happy for Avi that the choose granted our movement and dismissed the case.”
