Avraham Eisenberg, convicted for exploiting the Mango Markets decentralized finance platform, could face significant prison time, highlighting the increasing legal consequences surrounding major crypto crime.
Federal prosecutors are advocating for a sentence ranging from 78 to 97 months—roughly six and a half to eight years—ahead of Eisenberg’s May 1 sentencing hearing. In court filings dated April 22, they argued to New York District Judge Arun Subramanian that Eisenberg’s actions constituted a calculated attack, not merely a savvy trading strategy.
The prosecution asserts that the exploit defrauded investors of over $100 million and led to the collapse of the Solana-based protocol. “Fraud that takes over $100 million from investors and effectively shuts down a business is a shocking violation of criminal law,” the filing emphasized.
Eisenberg was found guilty in April on charges of wire fraud, commodities fraud, and market manipulation. The conviction stemmed from his manipulation of Mango’s native token, MNGO, to inflate its value artificially, allowing him to borrow and drain the platform’s treasury using the overvalued collateral.
Prosecutors detailed evidence suggesting premeditation, including the use of false identities—like a Ukrainian woman’s passport to open an FTX account—and techniques to mask his location, bypassing KYC checks on at least one exchange by appearing to operate from Poland.
Conversations on Discord reportedly revealed Eisenberg outlining his strategy beforehand, describing plans to massively inflate the token price and then borrow against it without needing to sell.
The severity of the proposed sentence reflects not only the financial scale of the crypto fraud but also considers Eisenberg’s separate guilty plea in a case involving child exploitation. However, prosecutors stressed that the digital asset offenses alone justify a substantial sentence.
While Eisenberg returned approximately $67 million after negotiations with the Mango DAO, the prosecution characterized this not as restitution but as a coercive deal. They argue the return was conditioned on the DAO agreeing not to pursue legal claims or criminal charges, labeling it akin to a “ransom note.”
Court documents also mentioned Eisenberg researched fraud statutes before the exploit and fled to Israel shortly after his identity became public. Despite later publicly framing his actions as legal market activity, prosecutors contend he was fully aware of the illegality of manipulative trading, even within the cryptocurrency space.
In a parallel victim impact statement, lawyers representing Mango Markets urged the court to mandate $47 million in restitution from Eisenberg. They stressed that the return of the misappropriated digital assets is crucial for compensating the affected community.
Following the exploit and its prolonged impact, Mango Markets ceased operations in early 2025 after a unanimous decision by its community members.