- Eisenberg used fake accounts to inflate prices and withdraw millions in crypto from Mango.
- Prosecutors demand up to 97 months in jail due to market fraud and abuse of content.
- Mango closed weeks before sentencing and now seeks millions in court-ordered reparations.
Mango Markets has requested $47 million in reparations as U.S. prosecutors push for a prison term of 78 to 97 months for Avraham “Avi” Eisenberg. He was found guilty of orchestrating a $110 million exploit on the decentralized exchange in 2022. A victim impact statement filed on April 22, 2025, in a New York district court asked U.S. District Judge Arun Subramanian to consider the full extent of the damage. Eisenberg is scheduled for sentencing on May 1, following his conviction for wire fraud, commodities fraud, and manipulation in April 2024.
Eisenberg’s Scheme Used False Identities and a Market Pump to Drain Funds
Based on court documents, Eisenberg used multiple identities and a deliberate scheme to manipulate the native MNGO token of Mango Markets by pumping prices. So he made the perpetual contracts create a look of high collateralization on his account to gain access to tokens worth $104 million. Prosecutors said Eisenberg had studied similar market cases, discussed the tactic on Discord, and tweeted about indictments before executing the plan.
Additionally, he transferred a portion of the funds off-chain and demanded immunity from the Mango DAO in return for partial repayment. Consequently, Eisenberg returned about $67 million, while governance voting allowed him to retain approximately $40 million. Prosecutors argued that his plan was deliberate and premeditated, as he fled the U.S. after the operation drew attention.
Child Abuse Material Charges Add Weight to Prosecutors’ Sentencing Push
Besides the market manipulation conviction, prosecutors also introduced separate charges involving child sexual abuse material (CSAM) found in Eisenberg’s possession. Court records showed that he had held over 1,200 images and videos, which he had downloaded over several years. These additional charges significantly influenced the prosecution’s request for a heavier sentence.
As the prosecutors stated, the measure of justice in this case should serve to reflect the full gravity of the crimes committed by the accused and serve as a cautionary tale for any future manipulation of cryptocurrencies. “This sentence must send an unmistakable signal to respect for the law and protection of the public,” the prosecutors insisted in their filing. They argued that the case would set the tone for regulating market manipulation concerning digital assets and enforcing compliance in decentralized finance.
Related: Kwon’s Legal Battle Continues Despite DOJ Crypto Shift
Mango Markets Closes Following the Exploit as Prosecutors Push for Accountability
Mango Markets entered service in August 2021 and declared its wind-up in January 2025 due to the exploit it faced. The closure was made public on X, effectively bringing an end to the company’s long-running operations post-Eisenberg.
Eisenberg’s lawyers argued that the act was a legitimate trade strategy that generated $110 million; however, this argument was rejected by the jury, which led to his conviction. This firm stance of the U.S. government implies stricter scrutiny of DeFi platforms and sets the tone for the future legal actions taken against them. Will this case later on redefine how decentralized finance platforms would protect themselves against market abuse in the future?
