Mango Markets exploiter sentenced to over 4 years on child abuse material charges

Avraham Eisenberg was sentenced to more than four years in prison on child sexual abuse material charges, unrelated to his role in the 2022 exploit that drained the decentralized exchange Mango Markets of roughly $100 million.

According to reporting from Inner City Press, a judge sentenced Eisenberg to 52 months in prison at a May 1 hearing in the US District Court for the Southern District of New York. The case was filed in April 2024 after Eisenberg’s 2023 indictment on fraud for the Mango Markets exploit.

Eisenberg was initially scheduled to be sentenced in July 2024 following his guilty plea on the child porn charge. In May 2024, the judge suggested the sentencing for both cases would occur simultaneously in a consolidated proceeding. However, as of May 1, the fraud sentencing remains pending.

The prosecution in the Mango Markets case reflects the growing probability of apprehension for hackers and cybersecurity exploiters plaguing the crypto industry with malicious attacks on platforms and users.

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The case of Avraham Eisenberg

Mango Markets, a former decentralized crypto exchange, was exploited in October 2022 through a price oracle manipulation, losing $100 million in user funds as a result.

The exchange’s native token, Mango (MNGO), also plummeted immediately following the hack, shedding 52% of its value within 24 hours and leading the Mango Markets team to suspend deposits.

Eisenberg defended the exploit, arguing that the $100 million heist was done through “legal open-market actions” and claimed that he negotiated a settlement for the return of user funds after the exchange’s insurance fund failed to cover the shortfall.

In December 2022, US federal law enforcement authorities arrested Eisenberg in Puerto Rico. FBI officials charged the hacker with one count of commodities fraud and one count of commodities manipulation.

A jury found Eisenberg guilty of wire fraud, commodities fraud, and commodities manipulation in April 2024. The defense argued that the exploit was not a cybercrime and represented a “successful and legal trading strategy.”

Following the conviction, the Mango Markets exploiter’s attorneys filed a motion for acquittal in September 2024, which was heavily opposed by US prosecutors, who argued that Eisenberg was correctly convicted through careful evaluation of a “mountain of evidence.”

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