The trial of Avraham Eisenberg, accused of exploiting Mango Markets, has been rescheduled from December 4, 2023, to April 8, 2024, following a successful motion by his legal team.
The request for delay stems from Eisenberg’s unexpected transfer to the Metropolitan Detention Center in Brooklyn, prompting the defence to argue the need for additional time to prepare a defence due to the case’s complexity and the extensive volume of discovery materials provided by the government.
Avraham Eisenberg faces criminal charges for commodities fraud, commodity manipulation, and wire fraud related to the alleged $116 million exploit of Mango Markets.
The SEC alleges that Eisenberg engaged in a manipulative scheme to artificially inflate the price of the MNGO token, resulting in substantial financial losses for Mango Markets.
Eisenberg’s actions, initially deemed part of a “highly profitable trading strategy,” led to subsequent civil lawsuits from the SEC, CFTC, and Mango Markets.
Notably, the charges against Eisenberg involve the Department of Justice, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC), alleging a $116 million exploit of Mango Markets.
Authorities charge Eisenberg with violations of anti-fraud and market manipulation provisions, seeking permanent injunctive relief, conduct-based injunction, disgorgement with prejudgment interest, and civil penalties. If convicted of wire fraud, Eisenberg faces a maximum prison sentence of 20 years.
Eisenberg has entered a ‘not guilty’ plea in response to the charges.
Eisenberg’s lawyers emphasised the necessity to sift through voluminous discovery materials submitted by U.S. prosecutors, asserting that the government’s continuous production of evidence impeded their preparation.
Prosecutors opposed the motion, contending that Eisenberg acted alone on a specific day through a defined set of financial transactions, and the defence had sufficient time for trial preparation.
Eisenberg, who defended his actions as legal and part of a profitable trading strategy, faces not only criminal charges but also civil lawsuits.
Despite a proposal that allowed him to retain $47 million as a “bug bounty,” legal experts express scepticism about the likelihood of complete release from liability.
The proposal’s wording is considered weak, and potential legal claims might persist, albeit with reduced commercial incentive for affected users to sue Eisenberg.