The alleged perpetrator of a $110 million cryptocurrency market manipulation scheme was scheduled to appear Feb. 2 in federal court in Manhattan, N.Y., for charges of commodities fraud, commodities market manipulation and wire fraud.
Avraham Eisenberg, 27, of San Juan, Puerto Rico, was charged with one count of commodities fraud, one count of commodities manipulation and one count of wire fraud in connection with “manipulation of the Mango Markets decentralized cryptocurrency exchange,” a news release said. Through Mango Markets, investors could purchase and borrow cryptocurrencies and cryptocurrency-related financial products.
“As alleged, Avraham Eisenberg manipulated the Mango Markets cryptocurrency exchange in order to obtain over $100 million in illicit profits for himself,” U.S. Attorney for the Southern District of New York Damian Williams said in the release. “Through his scheme, Eisenberg left others holding the bag. Market manipulation is illegal in all of its forms, and this office is committed to prosecuting such schemes wherever they occur – including in the cryptocurrency markets.”
The count of commodities fraud against Eisenberg has a maximum sentence of 10 years in prison, the release reported. Commodities manipulation also has a 10-year maximum prison sentence, and wire fraud holds a maximum sentence of 20 years in prison.
Eisenberg was to make his first appearance to hear charges Feb. 2 in the federal court of the Southern District of New York before U.S. Magistrate Judge Jennifer Willis. U.S. District Judge Richard Berman has been assigned the case, according to the release.
An indictment filed Jan. 9 said Eisenberg artificially manipulated the price of certain perpetual futures contracts in order to fraudulently obtain approximately $110 million worth of cryptocurrency from Mango Markets and its customers, the release said. He was arrested Dec. 26, 2022, in San Juan, Puerto Rico.
“Exploiting decentralized finance platforms is the new frontier of old school financial crimes in which criminals abuse emerging technologies for their own personal gain,” Kenneth Polite Jr., assistant attorney general of the Justice Department’s Criminal Division, said in the release. “With this prosecution, the Criminal Division is sending the message that no matter the mechanism used to commit market manipulation and fraud, we will work to hold those responsible to account.”
