The District Court for the Southern District of New York dismissed fraud and market manipulation charges against Abraham Eisenberg, who was a suspect in the case concerning the Mango Markets platform. The decision was made by Judge Arun Subramanian, who found the evidence insufficient to hold him accountable for these charges.
This is reported by Business • Media
Details of the Trial
Judge Subramanian noted that the incident did not fall under the jurisdiction of the Southern District of New York, as significant activities related to the charges occurred online from Puerto Rico. According to the court, “no substantial actions were recorded in New York,” and the evidence provided was inadequate to substantiate the allegations of fraud and commodity manipulation.
The defense emphasized that Eisenberg merely exploited a vulnerability in the Mango Markets code without making any false statements. Previously, the U.S. Department of Justice accused him of deliberately deceiving a credit system based on smart contracts.
“Mango Markets operated without permission and automatically,” so it could not be legally deceived, Judge Subramanian stated.
Background of the Mango Markets Case
Abraham Eisenberg was accused of manipulating assets on the Mango Markets platform in October 2022. According to the investigation, he used $5 million USDC to open opposing positions on futures contracts for MNGO, driving up the asset’s price through trading on the FTX, Serum, and AscendEX platforms. After that, Eisenberg withdrew over $100 million in cryptocurrencies from Mango Markets and sold MNGO, profiting from the price drop.
In April 2024, jurors found Eisenberg guilty of fraud and manipulation, which could have led to a sentence of up to 20 years in prison. However, the latest court ruling dismisses these charges due to insufficient evidence.