Avraham Eisenberg Convicted for $110 Million DEX Manipulation Scheme
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Avraham Eisenberg, who is 28 years old, has been found guilty of committing fraud related to manipulation of the commodities market, and wire fraud. These crimes are connected to the manipulation of the Mango Markets decentralized cryptocurrency exchange.
Eisenberg’s Conviction Highlights Financial Market Protection
In the first case involving the manipulation of crypto via trades on the open market, a federal jury in New York found Eisenberg guilty of participating in a fraud scheme.
He fraudulently stole around $110 million worth of crypto from Mango Markets and its users. This was done by artificially changing the price of specific perpetual futures contracts.
Eisenberg is set to be sentenced on July 29 and could be imprisoned for up to 10 years for the commodities manipulation charges and the commodities fraud. He could be also imprisoned for up to 20 years for the wire fraud charge.
Nicole M. Argentieri the Principal Deputy Assistant Attorney General, who is in charge of the Justice Department’s Criminal Division, highlighted the fraudulence activities on the trade.
He stated that Avraham Eisenberg carried out a manipulative trading plan on a cryptocurrency exchange, deceiving the exchange and its investors. Manipulative trading poses a threat to their investors and financial markets, he added.
This first case involves the process of cryptocurrency manipulation through open-market trades. It shows the criminal division’s dedication to protecting U.S. financial markets. It also involves punishing those who commit manipulation and fraud, regardless of the method they use.
Government Officials Take Stand Against Market Manipulation
U.S. Attorney for the Southern District of New York, Damian Williams, stated that Avraham Eisenberg was convicted by a jury in the first-ever crypto market manipulation. This landmark prosecution shows how this office can use new methods and advanced law enforcement tools to keep all financial markets safe.
The experienced prosecutors in this office are skilled in handling financial fraud cases, which is one of the team’s main priorities. Potential financial criminals should consider the consequences before engaging in illegal activities under their watch, he added.
Timothy Langan, the Executive Assistant Director of the FBI’s Criminal, Response, and Cyber Unit, highlighted their commitment to fighting market manipulation. He stated that the FBI and its partners will not tolerate criminals who engage in illegal activities that harm American citizens and their financial institutions.
If caught participating in fraudulent activities, whether it’s in the cryptocurrency sector or through other forms of market manipulation, the suspect will be held responsible for his/her unlawfully derived profits.
