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Avi Eisenberg, a crypto trader accused of multiple scams involving the Mango Markets is expected to go into a trial which will last for 2 weeks.
The trial of crypto trader Avi Eisenberg was initially scheduled for December 4, 2023, but Eisenberg’s defense team requested a postponement, and it is now expected to last for two weeks.
Acquisitions On Avi Eisenberg
Avi Eisenberg has been accused of illegally manipulating the price of the MNGO token in Mango Markets’ futures contracts. In addition, he is also accused of borrowing almost all of Mango’s deposits against his position.
This has resulted in him walking away with $110 Million in cryptocurrencies deposited by others on the platform. Eisenberg later returned a portion of the funds in exchange for a promise. The promise was that the Mango’s backers would not seek his prosecution. However, this promise was not kept.
Trial To Begin On Tuesday
Avi Eisenberg’s trial will begin on Tuesday with a 15-person jury that includes a seller of rare books, an elementary school music director, and at least two finance professionals.
The trial, expected to last two weeks, will determine if Eisenberg broke the law by deploying a “highly profitable trading strategy” that caused the failure of Mango Markets. Mango Markets is a popular platform for betting on cryptos on the Solana blockchain.
This trial is significant because it demonstrates the government’s efforts to regulate criminal activities in decentralized finance (DeFi). a crypto trading sector that operates under the belief that “code is law.”
Upcoming Testimony From Mango’s Founder
On Monday, the prosecutors and defense discussed the upcoming testimony from Mango’s founder, Dafydd Durairaj. He spoke with a ransomware negotiator for assistance after Eisenberg’s trade.
The prosecutors argued that this could help the jury understand that Durairaj did not view the negotiations as an “arm’s-length” deal between two parties. It is rather like a hostage situation that could go south any time.
Moreover, the Judge sided partially with Eisenberg’s defense team and instructed the government not to bring up the ransomware negotiator unless the defense opened the door.
Complex Trials With Jargonated Arguments
Complex trials loaded with jargonistic minutiae are expected. Notably, this will test the government’s strategy of presenting complicated crypto misdeeds as simple cases of fraud.
The government has used this tactic in previous prosecutions, including Sam Bankman-Fried’s case, and the recent civil fraud case against Terraform Labs and Do Kwon.
Eisenberg’s case is the first federal criminal trial involving a DeFi trader accused of breaking U.S. law in a sector that once considered itself beyond the government’s reach.
Summary
Avi Eisenberg is on trial for allegedly manipulating the price of MNGO token in Mango Markets’ futures contracts. The trial is the first federal criminal trial involving a DeFi trader accused of breaking U.S. law. The prosecutors and defense discussed upcoming testimony from Mango’s founder, Dafydd Durairaj, who sought assistance from a ransomware negotiator after Eisenberg’s trade caused Mango Markets to fail.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
