Man steals $110M in cryptocurrency scheme

An individual has been convicted for attempting to obtain approximately $110 million worth of cryptocurrency from Mango Markets.

Avraham Eisenberg, a 28-year-old residing in Puerto Rico, has also been convicted of commodities fraud, commodities market manipulation, and wire fraud in connection with the manipulation of Mango Markets decentralized cryptocurrency exchange.

Eisenberg was said to have engaged in a scheme to fraudulently obtain the funds from the decentralized cryptocurrency exchange and its customers by falsely manipulating the cost of “certain perpetual futures contracts.”

Eisenberg has been “found guilty by a unanimous jury in the first-ever cryptocurrency market manipulation case,” US Attorney Damian Williams for the Southern District of New York said.

“Avraham Eisenberg executed a manipulative trading scheme on a cryptocurrency exchange, defrauding the exchange and its investors out of $110 million,” Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, said.

Eisenberg's sentencing is scheduled for July 2024. He faces a maximum of 10 years in prison on the counts of commodities fraud and manipulation. He is also looking at a maximum of 20 years imprisonment for wire fraud. Eisenberg could face up to 30 years in prison if the maximum sentences are served.

Cryptocurrency schemes aren’t uncommon in the decentralized finance landscape.

Recently, a senior security engineer was found guilty of multiple attacks on decentralized exchanges, stealing over $12 million in cryptocurrency.

Shakeeb Ahmed was sentenced in what US Attorney Damian Williams calls “the first-ever conviction for the hack of a smart contract.”

Ahmed orchestrated two attacks on two separate decentralized cryptocurrency exchanges. He exploited issues within smart contracts and used false pricing data to generate $9 million in inflated fees.

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