Cryptocurrency Trader Accused Of Orchestrating A $110 Million Fraud
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A crypto trader has been charged with fraud regarding a $110 million market scam. A federal jury found Avraham Eisenberg guilty in New York following accusations by prosecutors of rigging the price of particular perpetual Commodity contracts on the Mango Markets exchange and spiking the value of swaps by 1,000%.
28-year-old Eisenberg was convicted of wire fraud, commodities fraud, and commodities market manipulation. The jury decided that he was guilty on all three charges and could probably spend decades in jail once sentenced in July.
Prosecutors Accused Eisenberg Of Using Two Accounts To Carry Out Trades
Prosecutors stated that he employed two accounts to concurrently carry out trades for futures contracts predicated on the worth of the USD Coin stablecoin and Mango’s token MNGO
After both the government and defense presented their closing arguments, the jury deliberated from Wednesday afternoon into Thursday before announcing their verdict. The hearing lasted for a week and occurred just a couple of floors beneath where the founder of FTX, Bankman-Fried, was convicted last month.
Deputy Principal Assistant Attorney General Nicole Argentieri cited that Eisenberg carried out a deceptive trading scheme on a crypto exchange, illegally obtaining $110 million from the trading platform and its investors.
Eisenberg’s Lawyer Said That He Deployed A Successful Legitimate Trading Scheme
Government attorneys cited during their closing arguments on Wednesday that the higher his pumping, the greater his ability to steal. It is obvious the accused was aware he was breaking the law, the prosecution added.
Eisenberg was detained in December 2022 in Puerto Rico. He then took out a loan against the contracts and journeyed from Puerto Rico to Israel.
The government said that he was running away because he was involved in a crime. However, Eisenberg’s defense lawyers insist he was escaping after receiving countless intimidations following his trades.
The defense’s argument concentrated on the framework of Mango Markets, which, according to Eisenberg’s team, enabled the trades to occur.
Defense lawyer Brian Klein noted that Eisenberg deployed a successful legitimate trading scheme. He added that his client was never obliged to undergo a credit check, offer collateral on the platform, or confirm his identity.
In the government’s response, Assistant United States Lawyer Thomas Burnett stated that the defense was attempting to draw attention away from the government’s allegations. He explained to the court that the documents and data prove Eisenberg was borrowing, and urged them to trust in their interpretation.
