In the DeFi altcoin project Mango Markets exploit, the hacker temporarily increased the MANGO token price by 10X. There were victims who lost their money in this process. The protocol suffered losses worth $110 million. A jury found Avraham Eisenberg guilty of $110 million in fraud by Mango Markets. Now Eisenberg faces 20 years in prison.
Jury finds DeFi altcoin hacker guilty!
cryptokoin.comAs you follow from , the DeFi altcoin project called Mango Markets was subjected to a serious attack. The perpetrator of this attack, Avi Eisenberg, was found guilty of fraud and market manipulation by a jury in Manhattan for the robbery worth $110 million. Avi Eisenberg was arrested in Puerto Rico following the hacking incident. Prosecutors charged Eisenberg with commodity fraud, commodity manipulation and wire fraud. A New York District Court Judge will make the final decision about Eisenberg on July 29. Accordingly, he faces up to 20 years in federal prison.
During his defense, Eisenberg claimed that they followed Mango Markets’ rules. He also argued that his transactions were successful and legal. But the jury did not accept this. Eisenberg became the latest crypto figure to be convicted of fraud, following first the conviction of FTX founder Sam Bankman-Fried and then the conviction of Terraform Labs co-founder Do Kwon for fraud in a civil fraud case.
Details of the hack incident
The prosecution explained how Eisenberg carried out a well-planned attack on Mango Markets. He pointed out that he deposited large amounts of USDC stablecoins into the platform before this attack. Eisenberg then used this capital to build an overblown position in MANGO. This resulted in the DeFi altcoin price being artificially pumped by over 1000% within an hour. The overnight increase in valuation enabled Eisenberg to take out a hefty loan against inflated assets. It also opened the door to withdrawing large amounts of other digital tokens from the platform.
Eisenberg’s defense and trial statements
Defense attorneys argued that Eisenberg’s actions were consistent with trading practices permitted at Mango Markets. Lawyers stated that the way the platform was designed and its working mechanisms made such actions possible. Therefore, he claimed that there was no illegal act or manipulation and fraud. Yet testimonies from affected users and sophisticated analysis from financial experts revealed a different view.
During the hearing, victims of DeFi altcoin exploitation shared their stories. A UK customer stated that he lost $124,000 because he could not withdraw money during the market chaos. This subjective narrative highlighted the wider impact on Mango Markets’ customers who were unable to access their digital assets. The court also considered evidence that Eisenberg studied certain terms related to market manipulation and criminal investigations before implementing his strategy.
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