Mango Markets Hacker Avraham Eisenberg’s Fraud Charges Dismissed

A United States judge has dismissed the commodities fraud and market manipulation charges against Avraham Eisenberg in the Mango Markets case. In an unexpected twist, the Judge ruled that the evidence against him was insufficient to support those charges.

US Authorities Lay Charges Against Mango Markets Hacker

On May 23, US District Judge Arun Subramanian dismissed the fraud and manipulation charges against the alleged Mango Markets hacker after confirming that the jury’s verdict lacked evidence. He also established that the prosecutor failed to prove beyond a reasonable doubt that Eisenberg falsely represented the platform.

The judge further highlighted the decentralized nature of the hacked platform, citing that “Mango Markets was permissionless and automatic … There was insufficient evidence of falsity.”

The United States Commodity Futures Trading Commission (CFTC) filed these manipulation and fraud charges against Eisenberg in January 2023. These charges came after the Department of Justice arrested him for the same reason. He was accused of artificially inflating the price of swaps offered by Mango Markets between October 11, 2022, and October 15, 2022.

“Defendant accomplished this scheme by manipulating the price of MNGO and, ultimately, the price of MNGO-USDC Swaps, through a type of scheme often referred to as oracle manipulation,” the CFTC said in the Eisenberg indictment.

Eisenberg was quick to defend himself, stating that he was involved with a highly profitable trading strategy on the platform. For reference, this trading engagement raked in so much profit that he later had to return over $67 million to the Solana-based DeFi.

His trial kicked off in 2024 after it was postponed due to its complexity.

Eisenberg and the Child Sexual Abuse Material Case

Beyond his crypto-related charges, Eisenberg has received a 4-year prison sentence in a separate case that involved the possession of child sexual abuse material (CSAM). To this charge, he pleaded guilty, plainly admitting that he possessed more than 1,200 images and videos of child pornography.

In addition to the recent development, prosecutors previously argued for a case hearing in New York. However, the judge dismissed it because he found no significant ties to the alleged crime in the state. With both manipulation and fraud charges pushed back, Eisenberg is now in the clear.

However, the Mango Markets hacker still faces civil suits from the US Securities and Exchange Commission (SEC) and the CFTC. Also, there is no certainty that the US government would not refile the recently vacated charges against him.

Donald Trump’s pro-crypto administration has been very lenient in dealing with crypto-based lawsuits. Based on this, Eisenberg’s charges may be dismissed as the SEC has done over the past few months.

Several crypto firms have benefited from the administration’s lessened focus on crypto lawsuits. The US SEC dismissed its lawsuits against Ripple, Coinbase, Robinhood, and Uniswap without enforcement actions.

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