Prosecutors Seek 78-97 Months for Mango Markets Exploiter

US federal prosecutors have petitioned a district judge to impose a prison sentence of at least six and a half years on Avraham “Avi” Eisenberg, the individual convicted of exploiting the decentralized exchange Mango Markets. This request is in preparation for Eisenberg’s sentencing hearing, scheduled for May 1. Prosecutors are advocating for a prison term ranging from 78 to 97 months, as detailed in an April 22 filing in a New York district court. The prosecution argues that this sentence is essential to reflect the gravity of Eisenberg’s crimes, which include wire fraud, commodities fraud, and commodities manipulation related to the Mango Markets exploit, as well as separate charges of possessing child pornography.

The prosecutors underscore that the fraud, which resulted in over $100 million being taken from investors and effectively shutting down the business, is a severe violation of criminal law. They assert that a commensurate sentence is necessary to deter future criminal activity and protect the public. During his April 2024 trial, Eisenberg’s legal team claimed that he employed a legal trading strategy that yielded him $110 million from Mango Markets. Although he returned approximately $67 million of the funds, he retained over $40 million following a community governance vote.

Mango Markets, in a victim impact statement filed on April 22, has requested $47 million in restitution. The exchange argues that while the damage caused by Eisenberg’s actions cannot be undone, the return of the misappropriated funds is crucial to rectifying the wrongs committed. Mango Markets, which launched in August 2021, announced its winding down of operations on January 11, with a subsequent post on January 18 setting the shutdown date for February 3.

Eisenberg was arrested in December 2022, and his sentencing has been postponed multiple times. Initially scheduled for December 12, 2024, it was later delayed to February 11, 2025, and then to April 10, 2025. The delays were attributed to the complexity of the sentencing issues by Eisenberg’s legal team.

This case highlights the severe consequences of financial crimes in the cryptocurrency space. The prosecution’s request for a lengthy prison sentence reflects the gravity of the offenses committed by Eisenberg, which not only resulted in significant financial losses for investors but also led to the shutdown of Mango Markets. The request for restitution by Mango Markets underscores the importance of holding individuals accountable for their actions and seeking to rectify the harm caused to victims. The multiple postponements of Eisenberg’s sentencing hearing indicate the complexity of the legal proceedings involved in this case, which has significant implications for the regulation and oversight of decentralized exchanges.