Federal Prosecution Advocates for Severe Sentence
Federal prosecutors in the United States are advocating for a substantial prison term for Avraham “Avi” Eisenberg, who was found guilty of executing a $110 million exploit on the decentralized exchange known as Mango Markets in 2022. As Eisenberg prepares for his hearing on May 1, federal authorities have submitted a request to US District Judge Arun Subramanian, suggesting a prison sentence ranging from 78 to 97 months, which translates to more than six and a half years.
Charges and Legal Justifications
The prosecution emphasizes that this proposed duration is fitting given Eisenberg’s conviction on multiple charges, including wire fraud, commodities fraud, and manipulation tied to the actions involving Mango Markets. Additionally, he faces separate charges associated with possessing child pornography. Prosecutors state the necessity of this sentence as a means to “accurately reflect the seriousness of the defendant’s actions, encourage adherence to the law, dissuade Eisenberg from engaging in illegal conduct again, and safeguard the community.”
The Fraudulent Act and Its Impact
They describe the fraudulent act, which resulted in the depletion of over $100 million from investors and effectively led to the suspension of business operations at Mango Markets, as an egregious violation of criminal statutes. The exchange had announced its closure in early January 2023, having originally opened in August 2021, and later confirmed the shutdown date to be February 3rd.
Trial and Defense Arguments
During the trial conducted in April 2024, Eisenberg’s defense team argued that the trading strategy he employed was legal—a point of contention that further complicates his case. Following the exploit, Eisenberg reportedly returned approximately $67 million to the exchange but retained over $40 million, a decision that was supported by a community governance vote.
Restitution Efforts by Mango Markets
Mango Markets is pursuing restitution, filing a statement urging the court to mandate Eisenberg to return an additional $47 million. Lawyers representing the exchange suggested this amount is necessary to restore financial balance for all parties involved, including the Mango DAO. They acknowledged that while recovering the funds may not mend the reputational harm inflicted on Mango Markets or alleviate the suffering caused by Eisenberg’s actions, it would serve as a step toward justice.
Timeline of Sentencing
Eisenberg was apprehended in December 2022, and the timeline for his sentencing has seen multiple changes. Originally slated for December 12, 2024, the date has since shifted to February 11, 2025, and again to April 10, 2025, with the legal team’s indication that the intricacies surrounding the sentencing are behind the repeated postponements.
