Judge overturns fraud convictions in Mango Markets exploit case
A US federal judge vacated fraud and manipulation convictions against Avraham Eisenberg related to a $110 million exploit of Mango Markets. Judge Arun Subramanian ruled that trial evidence did not support the jury's conclusion that Eisenberg made materially false representations. The ruling vacates convictions for commodities fraud and market manipulation, significantly weakening the government's case. Eisenberg, who claimed to exploit poorly designed code, was previously convicted for inflating the price of Mango’s MNGO token and withdrawing $110 million in crypto assets. The judge found insufficient evidence of deception, stating the system was permissionless and automatic. The DOJ must decide whether to refile charges, while Eisenberg still faces civil suits from the SEC and CFTC. Separately, Eisenberg was sentenced to nearly four years in prison for possessing child pornography, stemming from unrelated evidence found during his arrest in December 2022.
