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Avraham Eisenberg’s Exploits in the Solana-based Mango Markets
Avraham Eisenberg made headlines back in October of 2022 when he exploited the Solana-based Mango Markets, using it to his advantage. However, it wasn’t until December of the same year that he was formally charged with allegations related to fraud and market manipulation.
The Conviction
Fast forward almost 18 months, and the US District Court for the Southern District of New York has officially convicted Eisenberg on these charges. According to reports, Eisenberg attempted to defend himself using the argument ‘code is law’, but ultimately, he was found guilty of fraud and market manipulation. The damage caused by his exploit is estimated to be around $110 million.
Legal Defense and Verdict
During the trial, Eisenberg’s attorney tried to provide legal protection by claiming that his actions were part of a lawful and profitable trading strategy that simply capitalized on a design flaw within the Mango Markets protocol. Unfortunately for Eisenberg, the jury did not buy this defense, ultimately concluding that regardless of being on the blockchain, a crime is a crime.
MNGO Token and Market Impact
A central aspect of this case was the manipulation of the MNGO token, which reportedly led to a significant increase in its price. Eisenberg had used the token as collateral to borrow crypto worth $110 million, with no intention of repaying. Despite his claims of a profitable trading strategy, the token’s value has continued to decline, fluctuating constantly in the market.
Flight to Israel and Legal Ramifications
Following his conviction, Eisenberg reportedly fled to Israel and was caught searching for information related to criminal and regulatory enforcement of market manipulation. His case sets a precedent in addressing the ‘code is law’ principle within the industry, especially in the context of smart contracts and decentralized finance protocols.
Market Turmoil and Legal Battles
Eisenberg’s case emerges amidst a turbulent period for the crypto market, with tokens experiencing corrections and uncertain trajectories. The community remains divided over the future of crypto trading, especially in light of legal battles like Eisenberg’s that shed light on the challenges and complexities of the industry.
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