Mango Markets Hacker Sentenced to 52 Months for Child Abuse Material

Avraham Eisenberg, the individual responsible for the 2022 exploit of the decentralized exchange Mango Markets, has been sentenced to over four years in prison on unrelated charges of child sexual abuse material. The sentencing, which took place on May 1 in the US District Court for the Southern District of New York, resulted in a 52-month prison term. This case was filed in April 2024, following Eisenberg’s 2023 indictment on fraud charges related to the Mango Markets exploit.

Eisenberg was initially scheduled to be sentenced in July 2024 after pleading guilty to the child porn charge. However, in May 2024, the judge suggested that the sentencing for both the child abuse material charges and the fraud charges would occur simultaneously in a consolidated proceeding. As of May 1, the sentencing for the fraud charges remains pending.

The Mango Markets exploit, which occurred in October 2022, involved a price oracle manipulation that resulted in the loss of approximately $100 million in user funds. The exchange’s native token, Mango (MNGO), experienced a significant drop in value, losing 52% within 24 hours of the hack. This led the Mango Markets team to suspend deposits temporarily.

Eisenberg defended his actions, claiming that the $100 million heist was conducted through “legal open-market actions” and that he negotiated a settlement for the return of user funds after the exchange’s insurance fund failed to cover the shortfall. Despite his defense, Eisenberg was arrested in December 2022 by US federal law enforcement authorities in Puerto Rico. He was charged 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 but rather a “successful and legal trading strategy.” Following the conviction, Eisenberg’s attorneys filed a motion for acquittal in September 2024, which was strongly opposed by US prosecutors. The prosecutors argued that Eisenberg was correctly convicted based on a thorough evaluation of a “mountain of evidence.”

The prosecution in the Mango Markets case highlights the increasing likelihood of apprehension for hackers and cybersecurity exploiters who target the crypto industry with malicious attacks on platforms and users. This case serves as a reminder of the legal consequences that can arise from such activities, even if the perpetrator attempts to justify their actions through legal arguments.