Monero (xmr) 
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Avraham “Avi” Eisenberg, the individual responsible for exploiting the DeFi platform Mango Markets, could face over six years in prison as U.S. prosecutors push for a significant sentence ahead of his May 1 court hearing.
Eisenberg’s Exploit: A Premeditated Attack
According to an April 22 filing, federal prosecutors informed New York district court Judge Arun Subramanian that Eisenberg’s actions in 2022 were not an instance of clever arbitrage but a deliberate attack. The exploit defrauded investors of over $100 million and severely disrupted the Solana-based DeFi platform Mango Markets.
“Fraud that takes over $100 million from investors and effectively shuts down a business is a shocking violation of criminal law,” prosecutors stated.
Prosecutors are seeking a prison sentence ranging from 78 to 97 months (approximately six and a half to eight years). This recommendation reflects both the scale of the fraud and Eisenberg’s guilty plea in a separate child exploitation case. However, they emphasized that his cryptocurrency-related offenses alone justify a substantial sentence.
Convictions and Market Manipulation
In April, Eisenberg was convicted of multiple charges, including wire fraud, commodities fraud, and market manipulation. Prosecutors detailed how he manipulated the price of Mango’s governance token, MNGO, using inflated collateral to drain the protocol’s treasury.
Evidence from the case revealed that Eisenberg employed false identities and took steps to avoid detection. For instance, he used a Ukrainian woman’s passport to open an FTX account and bypassed Know Your Customer (KYC) checks on AscendEx by selecting a no-verification option while masking his IP address to appear as if he were in Poland.
Pre-Exploit Planning
Prosecutors highlighted Discord chats where Eisenberg openly discussed his strategy in advance. He reportedly outlined plans to “buy a ton, massively increase the price, and borrow on lending,” adding that there was no need to sell since “you can just let the loan stand.”
Partial Fund Return and Alleged Ransom
Although Eisenberg returned approximately $67 million following a DAO vote, prosecutors argued that this move was not a genuine return of funds. Instead, it was contingent on Mango DAO agreeing to “waive any potential claims” and refrain from pursuing criminal charges.
“This was not returning funds in any genuine sense of the term,” prosecutors stated, describing the action as tantamount to “a ransom note.”
Research and Evasion
Further evidence revealed that Eisenberg researched fraud laws prior to the exploit. Hours after his identity was exposed online, he fled to Israel. Despite this, he later defended his actions on social media, claiming the trade was legal. Prosecutors, however, countered this defense, asserting that Eisenberg was fully aware of the illegality of his actions.
“The defendant knew that fraudulent market manipulation is illegal, and that the cryptocurrency space was no exception,” the filing stated.
Restitution and Community Impact
In a victim impact statement filed on the same day, lawyers representing Mango Markets called for Eisenberg to pay $47 million in restitution. They argued that the return of misappropriated funds is critical to restoring the platform’s community.
“Although Eisenberg’s attack cannot be undone, return of the funds he misappropriated is critical to righting his wrong,” the statement emphasized.
The exploit ultimately led to the shutdown of Mango Markets in early 2025. The platform’s community voted unanimously to close operations, citing the long-term damage from the attack and the ongoing legal challenges as deciding factors.
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