US Man Faces 40-Year Jail Term for $110m Crypto Fraud Scheme
A US man is in hot water after allegedly defrauding crypto exchange Mango Markets and its customers of $110m in cryptocurrency. Avraham Eisenberg, 27, carried out the scheme while living in Puerto Rico, according to the Department of Justice (DoJ).
Charges and Allegations
Eisenberg has been charged with commodities fraud, commodities manipulation, and wire fraud following a filing from Mango Markets seeking $47m in damages plus interest from the time of the attack.
Mango Markets operates under the Mango Decentralized Autonomous Organization (DAO) and offers a crypto token, MNGO, for trading.
The accused is said to have manipulated the price of MNGO perpetuals contracts by selling large amounts to himself, causing a 1300% price increase in under an hour. He then allegedly used the inflated value of his futures position to borrow and withdraw $110m in various crypto assets from Mango Markets, depleting the platform’s assets.
Legal Consequences
US attorney Damian Williams for the Southern District of New York stated, “As alleged, Avraham Eisenberg manipulated the Mango Markets cryptocurrency exchange to obtain over $100m in illicit profits, leaving others at a loss.”
Aside from criminal charges, Eisenberg is also facing an SEC complaint for violating securities laws. The regulator seeks civil penalties, injunctive relief, and disgorgement with prejudgment interest.
Market manipulation, especially in the cryptocurrency sector, is illegal and will be prosecuted to the fullest extent of the law.