In a landmark case, Avraham Eisenberg, a 28-year-old resident of Puerto Rico, has been convicted by a federal jury in New York for orchestrating a $110 million cryptocurrency fraud scheme on the Mango Markets decentralized exchange. This represents the first prosecution of cryptocurrency open-market manipulation by the U.S. Department of Justice.
Eisenberg was found guilty of manipulating the price of specific perpetual futures contracts on Mango Markets, leading to losses of approximately $110 million in cryptocurrency assets for the exchange and its users. This complex scheme not only undermined the integrity of financial markets but also betrayed the trust of investors relying on digital assets.
Nicole M. Argentieri, Principal Deputy Assistant Attorney General, highlighted the significance of the case, stating, “Manipulative trading poses a threat to our financial markets and investors. This prosecution, the first of its kind involving cryptocurrency market manipulation, underscores the Criminal Division’s dedication to safeguarding U.S. financial markets and holding perpetrators accountable, regardless of the methods they employ to commit manipulation and fraud.”
Eisenberg now faces a maximum sentence of 10 years for each commodities-related charge and up to 20 years for the wire fraud charge. His sentencing is scheduled for July 29, where a federal district court judge will consider various factors, including the U.S. Sentencing Guidelines, in determining the appropriate punishment.