Judge overturns fraud convictions in Mango Markets exploit case

An US federal judge has canceled the main decomes of fraud and manipulation against Avraham Eisenberg, the merchant at the center of the case involving a feat of $ 110 million in the decentralized mango markets.

Friday, the judge of the American district Arun Subramanian ruled that the evidence presented at the trial did not support the conclusion of the jury according to which Eisenberg made materially false representations on the mango markets.

The decision cancels Eisenberg’s convictions for fraud and manipulation of the basic products market and acquired a third accusation, considerably weakening the case of the government.

Eisenberg, a self-proclaimed “applied theorist”, was sentenced in 2024 to have artificially inflated the price of the Mango token from Mango by more than 1,300% in a few minutes and using the resulting gains as a guarantee to withdraw $ 110 million in cryptographic active ingredients from the platform.

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The judge is next to Eisenberg

The Ministry of Justice argued that it had deceived the Mango smart contract loan system, but the Defense of Eisenberg argued that it simply exploited the code little designed without authorization – without making false representations.

Judge Subramanian agreed, writing that “the mango markets were without permission and automatic”, which means that the system could not be deceived in a legal sense. “There were insufficient evidence of falsehood,” added the judge, moving with the interpretation by Eisenberg of the DEFI mechanics.

The judge also rejected the argument of prosecutors that the case should be heard in New York. Eisenberg was in Puerto Rico at the time of the trades, and the court concluded that no significant activity linked to alleged crime had occurred in New York.

The DoJ had cited a mango user based in Powhkeepsia and a third -party supplier in Manhattan, but the judge judged that this was not enough to establish an appropriate place.

The US government must now decide to refuse the canceled charges, although the Trump administration has recently reported a reduction in the emphasis on the application of cryptography. Eisenberg is still faced with civil law and CFTC.

While this decision erases Eisenberg in the mango market case, it remains behind bars.

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Eisenberg in charge of juvenile pornography

In a separate case, Eisenberg was sentenced to almost four years in prison on May 1 after pleading guilty of possession of juvenile pornography – an accusation resulting from unrelated evidence discovered during his arrest.

In December 2022, the American federal authorities of the application of laws arrested Eisenberg in Puerto Rico. FBI officials charged the pirate of a raw material chief and a manipulation chief of raw materials.