Crypto Trader’s Convictions Vacated in Mango Markets Fraud Case

Description

A trader charged in the first US case tied to cryptocurrency manipulation won a legal challenge to overturn his convictions for exploiting Mango Markets rules to steal $110 million from the exchange.

Publish date

May 24, 2025

Publisher

Bloomberg

Web URL

https://www.bloomberg.com/news/articles/2025-05-24/crypto-trader-s-convictions-vacated-in-mango-markets-fraud-case

Referenced by

In challenging his convictions, Eisenberg had argued that the Manhattan federal prosecutors who brought the case against him didn’t have the jurisdiction to do so.

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“Eisenberg argues that the government failed to prove that he made any material, false representation to Mango Markets,” the judge wrote in his ruling Friday. “By and large, his arguments focus on the lack of any terms and conditions on the platform and the fact that Mango Markets was permissionless and automatic, so anything Eisenberg represented to the platform couldn’t influence its decision to lend him cryptocurrency. The Court agrees that there was insufficient evidence of falsity.”

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Eisenberg, a self-described “applied game theorist,” was found guilty last year of commodities fraud, manipulation and wire fraud for trading that boosted the price of futures contracts by 1,300% in 20 minutes on Oct. 11, 2022.

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