Report: Mango Markets Exploiter Convicted in Multi-Million Dollar Crypto Fraud C

[sirty143]

Report: Mango Markets Exploiter Convicted in Multi-Million Dollar Crypto Fraud Case

A U.S. federal jury has convicted Avraham ‘Avi’ Eisenberg on charges of commodities fraud, commodities manipulation, and wire fraud due to his involvement in the $116 million exploit of Mango Markets... See more for yourself here.

Your opinion is greatly appreciated.

[Z-tight]

This is the risk people face when they buy and trade tokens or coins that can easily be manipulated in this way, and then crash because there is no utility to help it rise again. From the article, it is possible Eisenberg could be sentenced to 20 years in prison, but i think he should get lesser than that, if sbf could get 25 years in prison for all the crimes he committed, i don't see why this exploiter should get 20 years in jail.

[TomPluz]

This is the risk people face when they buy and trade tokens or coins that can easily be manipulated in this way, and then crash because there is no utility to help it rise again. From the article, it is possible Eisenberg could be sentenced to 20 years in prison, but i think he should get lesser than that, if sbf could get 25 years in prison for all the crimes he committed, i don't see why this exploiter should get 20 years in jail.

I think that the prison sentence heaped on SBF will now be the standard on which other crypto-related cases will be gauged. Yes, it is possible that Avraham ‘Avi’ Eisenberg will eventually get less than 20 years and nothing more as he committed lesser-in-weight crimes than Sam Bankman-Fried in the very famous FTX collapse. I am actually amazed of what Avi did by using just $5 million to potentially get a financial windfall of $116 million. We should be happy that he got caught and is now facing the heavy brunt of the law so we can be sending the strong message to all scammers and fraudster to refrain from their evil plans otherwise face the possibility of their freedom curtailed and their assets confiscated. Not, unless of course, if you are based in North Korea where prosecution can be impossible. This story really highlights the possible danger and security lapses that can still occur in a DeFi platform...hopefully things will strongly evolve for the benefits of the many users of a platform like this.

[robelneo]

He deserves that length of sentence and should be more, imagine trying to justify his wrongdoing by stating

.. his actions were legally permissible under the then-existing protocols of Mango Markets. “Every trade has a winning side, and every trade has a losing side. It is not illegal to win, to execute a trade that is to your benefit. Mango Market is computer program, a series of smart contracts,” Eisenberg’s lawyer told the court.

If the regulators had not caught Eisenberg’s actions there would have been more manipulation in DeFi with his conviction it stopped future manipulation of the market, this is one of the bad sides of DeFi, even on DeFi there should be a level of regulation.

[SamReomo]

The guy was so smart that he did multi-million dollar crypto fraud without any hesitation. I believe 20 years of sentence is a good punishment for someone like that. Such manipulations often take place in shitcoin markets but none of the manipulators get punished that way.

I believe that his sentence may stop those manipulators and rug-pullers to stop their operations, however, I don't think it's going to be easy to find out those manipulators or the ones who rug-pull money of the investors.

[Faisal2202]

Avi seems to be a smart guy, I think he should not be sentenced but as the jury found him guilty what can be done, I mean he did not break any kind of rules, he used the platforms according to there rules, and he deposited $5 million USDC which pumped the Mango token, then he took a loan and the loophole was the mango platform provided more loan then the amount is in collateral. I mean that's not a mistake that is done without any purpose.

Still, the jury thought he manipulated the price by first injecting the money, hmmm. No words on it, but hey they are justice system know more than me, but here I had a case in which one of my classfellow hacked into our learning management system and changes the results. He did not get fined or punished because the system said he did not made any mistake he was only using the website and found a loophole which you guys left wide-open so its your mistake.

[Z-tight]

I think that the prison sentence heaped on SBF will now be the standard on which other crypto-related cases will be gauged.

No, it is not going to be the standard, i believe every case would still be handled on a case by case basis. I was just thinking aloud that if sbf got 25 years, when he committed a far greater crime and was expected to get ~ 100 years in jail, then i don't think this exploiter would or should get 20 years in jail.

[Captain Corporate]

To be fair this is an improvement because in most cases when there is a crypto related scam, most courts just turn a blind eye to it, the fact that this one ended up being a little bit more careful and better seems to be important and better. If we keep having these stuff, like jail people who do these scams, then I am sure that we are going to get less and less people who does this. Don't get me wrong, there are plenty of people who commit illegal stuff even though they know it, irregardless of crypto, so there will always be some people who will do it, but if we jail them, then the number will go down.

[Z-tight]

To be fair this is an improvement because in most cases when there is a crypto related scam, most courts just turn a blind eye to it,

People who commit financial crimes, be it crypto or fiat scam, if the prosecutors can prove that they are guilty, they are going to be punished by the law, i think it has always been that way. It is surely a good deterrent if people who commit financial crimes with crypto face the music, but i am sure the media likes to talk so much about crypto scams and make gullible people think crypto is a scam.

[Baofeng]

To be fair this is an improvement because in most cases when there is a crypto related scam, most courts just turn a blind eye to it, the fact that this one ended up being a little bit more careful and better seems to be important and better. If we keep having these stuff, like jail people who do these scams, then I am sure that we are going to get less and less people who does this. Don't get me wrong, there are plenty of people who commit illegal stuff even though they know it, irregardless of crypto, so there will always be some people who will do it, but if we jail them, then the number will go down.

Not sure what is the batting percentage of SEC against crypto related scams, but here is was a pure pump-and-dump scheme and this is what the other agencies are looking at, including CFTC and DOJ and most likely they found that the person in this case tried to manipulate everything in his favor.

Let this be another lessons for those kind of individuals, not that I'm into the side of this government ABC's agency. But sooner or later if you did something bad and it raises concern, then sooner or later you will be caught.

[yhiaali3]

People who commit financial crimes, be it crypto or fiat scam, if the prosecutors can prove that they are guilty, they are going to be punished by the law, i think it has always been that way. It is surely a good deterrent if people who commit financial crimes with crypto face the music, but i am sure the media likes to talk so much about crypto scams and make gullible people think crypto is a scam.

I agree with you on this point. The media often distorts the facts and spreads the news as if cryptocurrency itself is a scam and not that there are fraudulent people who do these shameful acts.

These manipulations exist in the crypto markets as well as in other financial markets and global stock exchanges, where there are always fraudsters who manipulate the markets and cause people to lose millions, but to be fair, these matters are much more present in the crypto markets.

[hugeblack]

I think that its simulation aims to shed light on the legal risks to exploit the decentralized financing protocols (Defi) and then be the beginning of deeper procedures to control these markets and impose control over them or at least create more KYC restrictions.
Also, scamming investors by bumping 5 million USDC to 115 million deserves more than 20 years of prison, which has not been officially read.

Nevertheless, the jury’s decision indicates a significant resistance against deceptive practices in the cryptocurrency market, suggesting a more stringent approach to regulatory enforcement, even within defi environments.