Crypto Market Rocked by $110M Manipulation, Mango Markets Shuttered

In a landmark decision, the US Department of Justice has secured a conviction against Avi Eisenberg for orchestrating a complex manipulation scheme that shuttered the decentralized crypto exchange Mango Markets. The jury found Eisenberg guilty on all counts, including commodities fraud, market manipulation, and wire fraud.

Scheduled for sentencing on July 29, Eisenberg faces up to 10 years in prison for the commodities-related charges and up to 20 years for wire fraud. The conviction stems from his actions on Mango Markets, where he fraudulently inflated the price of perpetual futures contracts to siphon off approximately $110 million in cryptocurrency from the platform and its users.

Nicole M. Argentieri, the lead prosecutor in the case, emphasized the severe threat such schemes pose to financial markets and investors. This case marks the DOJ’s first trial focusing on cryptocurrency manipulation through open market trades, underscoring a commitment to safeguard financial markets and pursue fraudsters across all platforms.

Eisenberg’s notorious manipulation not only affected investors but also forced Mango Markets into insolvency, prompting the platform to halt operations. The fallout continues as Mango Labs awaits federal guidance to proceed with its own lawsuit against Eisenberg for price manipulation.

Mango Labs accuses Eisenberg of having a history of manipulating markets, including a notable incident in 2021 involving another platform, which adds to his contentious profile.

Despite the controversy, Eisenberg previously defended his actions on social media as legitimate market strategies, although these claims have been widely criticized. His defense maintains his innocence, planning to continue their legal battle.

This high-profile case follows other significant legal actions in the crypto world, emphasizing the DOJ’s increasing focus on cryptocurrency crimes.