Avraham Eisenberg was sentenced to greater than 4 years in jail on youngster pornography prices, unrelated to his position within the 2022 exploit that drained the decentralized change Mango Markets of roughly $100 million.
Based on reporting from Interior Metropolis Press, a decide sentenced Eisenberg to 52 months in jail at a Could 1 listening to within the US District Courtroom for the Southern District of New York. The case was filed in April 2024 after Eisenberg’s 2023 indictment on fraud for the Mango Markets exploit.
Eisenberg was initially scheduled to be sentenced in July 2024 following his responsible plea on the kid porn cost. In Could 2024, the decide prompt the sentencing for each instances would happen concurrently in a consolidated continuing. Nonetheless, as of Could 1, the fraud sentencing stays pending.
The prosecution within the Mango Markets case displays the rising likelihood of apprehension for hackers and cybersecurity exploiters plaguing the crypto business with malicious assaults on platforms and customers.
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The case of Avraham Eisenberg
Mango Markets, a former decentralized crypto change, was exploited in October 2022 by way of a worth oracle manipulation, shedding $100 million in person funds because of this.
The change’s native token, Mango (MNGO), additionally plummeted instantly following the hack, shedding 52% of its worth inside 24 hours and main the Mango Markets crew to droop deposits.
Eisenberg defended the exploit, arguing that the $100 million heist was carried out by way of “authorized open-market actions” and claimed that he negotiated a settlement for the return of person funds after the change’s insurance coverage fund didn’t cowl the shortfall.
In December 2022, US federal regulation enforcement authorities arrested Eisenberg in Puerto Rico. FBI officers charged the hacker with one depend of commodities fraud and one depend of commodities manipulation.
A jury found Eisenberg guilty of wire fraud, commodities fraud, and commodities manipulation in April 2024. The protection argued that the exploit was not a cybercrime and represented a “profitable and authorized buying and selling technique.”
Following the conviction, the Mango Markets exploiter’s attorneys filed a motion for acquittal in September 2024, which was closely opposed by US prosecutors, who argued that Eisenberg was accurately convicted by way of cautious analysis of a “mountain of proof.”
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