Avraham “Avi” Eisenberg faces a potential 6.5-year sentence for exploiting Mango Markets, a DeFi trading platform, resulting in a $110 million theft. The case sets a precedent for legal treatment of crypto fraud incidents in the U.S. as Eisenberg’s actions were labelled fraudulent despite claims of legality. The sentencing is scheduled for April 10, 2025, with ongoing civil suits against him from the SEC and CFTC.
U.S. prosecutors are pursuing a 6.5-year prison sentence for Avi Eisenberg following his high-profile exploitation of Mango Markets that cost the platform around $110 million. This case, which is gaining attention as it approaches sentencing on April 10, 2025, could significantly impact how crypto-related crimes are treated in U.S. courts, especially when it involves decentralized finance (DeFi).
In October 2022, Mango Markets, a DeFi trading platform on the Solana blockchain, became the target of a strategic attack by Eisenberg. By manipulating the value of the MNGO token and related futures contracts across two accounts he controlled, he inflated the token’s value by an astonishing 1,300%. He managed to siphon off $110 million in a quick half-hour transaction, later describing it as a “highly profitable trading strategy.” Even after returning about $67 million following negotiations for a partial refund, Eisenberg was still charged with crimes. Arrested in Puerto Rico in December 2022, he has been in federal custody since.
In April 2024, a jury convicted Eisenberg on charges of commodities fraud, commodities manipulation, and wire fraud. This conviction was significant as it marked the first criminal case related to market manipulation on a DeFi platform in the U.S. Eisenberg’s defence claimed his actions were legal, rooted in the belief that he was merely using the code as it was intended — an argument often referred to in crypto as “code is law.” However, the prosecution successfully argued that Eisenberg’s actions were deceptive and aimed at personal financial enrichment.
While federal prosecutors could request a sentence of up to 20 years, they are recommending a 6.5-year term, factoring in the partial return of funds as a mitigating circumstance. The sentencing has already been postponed multiple times to consider pre-sentencing reports, but April 10 could finally close this chapter.
However, Eisenberg’s legal battles may not end here. The SEC and CFTC have both initiated civil suits against him, which remain on hold until the conclusion of the criminal proceedings. This situation plays out against a backdrop of increased regulatory scrutiny in the crypto sector, with other high-profile cases, like that of Sam Bankman-Fried’s FTX, prompting authorities to emphasise that crypto activity is still accountable under the law.
As the DeFi space expands, Eisenberg’s case could establish a legal framework for how future similar exploits are adjudicated in court. For now, he remains incarcerated, and the industry watches closely to gauge the implications of his impending sentence.
