US to begin fraud trial on Avi Eisenberg’s $116 million Mango Markets exploit

A federal court in New York will start The trial of Avraham Eisenberg’s fraud and manipulation charges will take place on Tuesday, during which his alleged allegations will be examined Exploitation worth $116 million from Solana-based DeFi exchange Mango Markets. The trial is expected to last two weeks.

The trial was originally scheduled for December 4, 2023, but it did postponed on request of Eisenberg’s defense team.

While Eisenberg confirmed that he and his team orchestrated the attack on Mango Markets in October 2022, claimed it was merely a “highly profitable trading strategy” that legally abused the protocol as it was designed.

The strategy Involved in Eisenberg inflating the platform’s native Mango token by manipulating the price oracle and using the inflated tokens as collateral to take out approximately $116 million worth of crypto loans causing the platform to become insolvent. Eisenberg later agreed with the Mango DAO to return $67 million of the money.

Eisenberg was arrested in December 2022, after charges were filed by the Department of Justice, the Commodity Futures Trading Commission and the Securities and Exchange Commission. In the US, bank fraud charges carry a prison sentence of up to 20 years.