US begins fraud trial over Avi Eisenberg’s $116 million Mango Markets use

New York Federal Court will start Abraham Eisenberg’s trial on charges of criminal fraud and manipulation will examine his claims on Tuesday. $116 million misused Mango Markets, a Solana-based DeFi exchange. The trial is expected to last two weeks.

The trial was originally scheduled for December 4, 2023. Postponed upon request Eisenberg’s defense team.

Although Eisenberg confirmed that he and his team coordinated an attack on Mango Markets in October 2022, assert It is simply a “high-yield trading strategy” that legitimately utilizes the protocol as designed.

that much strategy Eisenberg manipulated price oracles and inflated the platform’s native Mango tokens using the inflated tokens as collateral to withdraw approximately $116 million worth of cryptocurrency loans that bankrupted the platform. Eisenberg later reached a settlement with Mango DAO, returning $67 million in funds.

Eisenberg said be arrested December 2022, following complaints from the Department of Justice, Commodity Futures Trading Commission, and Securities and Exchange Commission. In the United States, wire fraud charges can result in up to 20 years in prison.

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