Summary
TLDR: Crypto trader Avraham Eisenberg found guilty of fraud on Solana DeFi platform Mango Markets, exploiting $110 million in cryptocurrencies. Prosecutors allege he manipulated prices and drained funds from the platform, offering to return some stolen funds in exchange for keeping the rest. Defense claims his actions were legal and compliant with the platform’s rules. Eisenberg faces up to 20 years in prison.
Key Points
1. Avraham Eisenberg, a 28-year-old crypto trader, was found guilty of fraud on the Solana decentralized finance (DeFi) platform, Mango Markets. This involved a scheme that allowed him to exploit $110 million in cryptocurrencies.
2. The verdict, issued by a federal jury in New York, found Eisenberg guilty of commodities fraud, commodities manipulation, and wire fraud after a week-long trial in Manhattan. Although not yet sentenced, Eisenberg faces a possible sentence of up to 20 years in prison.
3. Eisenberg conducted an oracle price manipulation attack on Mango Markets in 2022, temporarily pumping the price of MNGO and draining the liquidity out of the platform. He then offered to return $67 million of the stolen funds in exchange for permission to keep the remaining $43 million, but the DAO rejected the proposal.