U.S. federal prosecutors are pushing for a prison sentence of up to 6.5 years for Avraham “Avi” Eisenberg, who was convicted for his role in the $110 million exploit of decentralized exchange Mango Markets in 2022.
In an April 22 court filing, prosecutors requested that Judge Arun Subramanian impose a sentence between 78 and 97 months ahead of Eisenberg’s scheduled sentencing hearing on May 1.
Eisenberg was found guilty in April 2024 of wire fraud, commodities fraud, and market manipulation linked to the Mango Markets attack.
He also faces separate charges related to possession of child pornography, which prosecutors argue further justifies a lengthy prison term.
Prosecutors Highlight $100M Fraud and Mango Markets Shutdown
In their filing, prosecutors emphasized the severity of Eisenberg’s actions, stating that his scheme not only defrauded investors of over $100 million but also forced Mango Markets to shut down.
“This sentence is necessary to reflect the gravity of the defendant’s crimes, deter future misconduct, and protect the public,” the filing read.
Mango Markets, which launched in August 2021, announced in January 2024 that it would cease operations, citing the lasting impact of the exploit. The platform officially shut down on February 3.
During his trial, Eisenberg’s defense maintained that his actions were part of a legal trading strategy.
While he did return approximately $67 million following a community governance vote, he retained over $40 million from the exploit.
In a victim impact statement, Mango Markets requested $47 million in restitution, arguing that the return of funds is essential to mitigate the financial damage caused by Eisenberg.
“No amount of money will repair the reputational harm or the suffering inflicted, but restitution will help make the community whole,” the statement noted.
Eisenberg was arrested in December 2022, and his sentencing has faced multiple delays due to what his legal team described as complex legal considerations.
Originally set for late 2024, the hearing was postponed several times before being scheduled for May 2025.
If the court agrees with prosecutors, Eisenberg could face one of the harshest sentences handed down for a DeFi-related exploit to date.
How Eisenberg Manipulated Mango Markets Contracts
On October 11, 2022, Mango Markets was the victim of an attack in which approximately $110 million was drained from its treasury.
Shortly after the attack, Avraham Eisenberg came forward as the perpetrator, asserting that the exploit was merely a “highly profitable trading strategy” and claiming it was conducted within the bounds of legality and the protocol’s intended design.
According to prosecutors, Eisenberg utilized two accounts to engage in manipulative trading involving futures contracts tied to the values of Mango’s token MNGO and the stablecoin USD Coin.
Last year, Eisenberg also faced additional charges of possessing child pornography.
At the time, Court documents alleged that Eisenberg had images in his possession depicting prepubescent minors under the age of 12.
Earlier court documents filed in August revealed that the material was initially discovered on Eisenberg’s cell phones and laptops during a search related to the charges of market manipulation and fraud.
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