Mango Markets Hacker Sentenced to 52 Months for Child Pornography
1min read 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 child pornography charges. The sentencing, which took place on May 1 in the US District Court for the Southern District of New York, saw Eisenberg receive a 52-month prison term. This case was filed in April 2024, following his 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 pornography charge. However, the judge suggested that the sentencing for both the child pornography and fraud cases would occur simultaneously in a consolidated proceeding. As of May 1, the sentencing for the fraud case 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 exploit 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. However, his defense was not accepted by the court, and he was found guilty of wire fraud, commodities fraud, and commodities manipulation in April 2024.
Following his 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 the evidence presented.
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. This case serves as a reminder of the legal consequences that can arise from such activities, regardless of the perceived legality of the actions taken.
