Eisenberg was found guilty of exploiting Mango Markets.

Avraham Eisenberg used Solana-based Mango Markets in October 2022. He was indicted on the charges two months later, in December 2022. Now it’s been nearly 18 months since he was arraigned in U.S. District Court or the Southern District of New York. , Eisenberg was found guilty of fraud and market manipulation. This happens after he tries to use it. code is law As a defensive argument, according to the report.

His exploits are estimated to have cost the network nearly $110 million. This reportedly occurred after he utilized a poorly built DeFi protocol. In an effort to provide Eisenberg with legal protection, his attorneys argued that his actions amounted to a legal and profitable trading strategy that took advantage of a design flaw in Mango Markets.

The jury wasn’t convinced and concluded that crimes that occur on blockchain are crimes.

MNGOs are one particular token in the middle of the conversation. It is believed that this manipulation caused the price to rise significantly. Eisenberg borrowed approximately $110 million worth of cryptocurrency using perpetual tokens as collateral. Reports say he had no intention of repaying the money. Avraham said that even though the development team had no idea what would happen to their design, this turned out to be a profitable trading strategy.

In the end, Eisenberg succeeded in spurring price increases.

This incident was expected to ultimately end the decline of MNGO tokens. However, things changed as the value of the token continued to fall. It only recently rose 1.59% to $0.02903. It maintained a 9.45% decline over the past 7 days. At the time of writing, 24-hour trading volume is down 25.42% and market capitalization is up 0.19%.

After fleeing to Israel, Eisenberg reportedly searched the Internet for the following: Crime and regulatory enforcement against market manipulation and Israel Extradition List. Eisenberg is currently convicted of commodity market manipulation, commodity fraud, and wire fraud.

Eisenberg’s court case was one of the first the court addressed. code is law Principles of the industry. Smart contracts are often believed to be fairer than rules drafted by traditional organizations.

It was Eisenberg’s attempt to blackmail the governance of the Mango Markets protocol that could have triggered such a lengthy legal battle in the first place. He also buys Ukrainian women’s FTX accounts to perform some transactions related to the exploit. That means he was found guilty of racketeering, using fake KYC, and storing child pornography on his phone.

This development comes at a time when the entire cryptocurrency market is in turmoil. The movement of tokens is largely ready for a correction, but some are showing bullish signals and are dividing the community.