U.S. Prosecutors Seek Lengthy Sentence for Mango Markets Exploit Convict

According to Cointelegraph, U.S. federal prosecutors have requested a district judge to impose a sentence of at least six and a half years on Avraham “Avi” Eisenberg, who was convicted for exploiting the decentralized exchange Mango Markets in 2022, resulting in a $110 million loss. The sentencing hearing is scheduled for May 1, and prosecutors are urging U.S. District Judge Arun Subramanian to consider a prison term ranging from 78 to 97 months, as detailed in an April 22 filing in a New York district court. Prosecutors assert that such a sentence is warranted due to Eisenberg's conviction in April 2024 for wire fraud, commodities fraud, and commodities manipulation related to the Mango Markets exploit. Additionally, Eisenberg faces separate charges for possessing child pornography. The prosecution emphasizes that the sentence should reflect the severity of the crimes, uphold respect for the law, deter future criminal activities, and safeguard the public. They argue that fraud resulting in over $100 million in losses and the shutdown of a business constitutes a grave violation of criminal law, necessitating a sentence proportionate to the crime. Mango Markets, which launched in August 2021, announced its decision to wind down operations on January 11, with a subsequent post on January 18 indicating a shutdown date of February 3. During Eisenberg's trial in April 2024, his legal team contended that he executed a legitimate trading strategy, profiting $110 million from Mango Markets. Eisenberg has returned approximately $67 million of the funds post-exploit, retaining over $40 million following a community governance vote. In an April 22 impact statement, Mango Markets' legal representatives requested the court to grant $47 million in restitution, aiming to restore the exchange and its DAO. They stressed that while Eisenberg's actions cannot be undone, returning the misappropriated funds is crucial to addressing the wrongdoing. Mango Markets acknowledged that no monetary compensation can fully repair the reputational damage and suffering caused by Eisenberg's actions, but restitution would aid in mitigating the impact. Eisenberg was arrested in December 2022, and his sentencing has faced multiple postponements. Initially set for December 12, 2024, it was delayed to February 11, 2025, and subsequently to April 10, 2025. Eisenberg's legal team attributed the delays to the complexity of the sentencing issues.