US federal prosecutors have asked a district judge to sentence Avraham “Avi” Eisenberg, the crypto user convicted of the $110 million exploit of the decentralized exchange Mango Markets in 2022, to at least six and a half years behind bars.
Ahead of Eisenberg’s May 1 sentencing hearing, US prosecutors are petitioning US District Judge Arun Subramanian for Eisenberg to face between 78 and 97 months in prison, according to an April 22 filing in a New York district court.
Prosecutors argue it’s an appropriate sentence for Eisenberg’s April 2024 conviction for committing wire fraud, commodities fraud and commodities manipulation in connection with the Mango Markets exploit and separate charges that he possessed child pornography.
“This sentence is necessary to, among other things, appropriately reflect the gravity of the defendant’s crimes, promote respect for the law, deter the defendant from future criminal activity, and protect the public,” the prosecutors said.
“Fraud that takes over $100 million from investors and effectively shuts down a business is a shocking violation of criminal law, and it necessitates a sentence commensurate with the crime.”
Mango Markets announced on Jan. 11 that it was winding down operations. It first launched in August 2021. A subsequent Jan. 18 post to X gave a date of Feb. 3 for the shutdown.
During his April 2024 trial, Eisenberg’s legal team claimed he orchestrated a legal trading strategy that saw him profit $110 million from Mango Markets.
He has returned roughly $67 million of the funds after the exploit, but retained more than $40 million following a community governance vote.
Mango Markets hopes for restitution
In an April 22 impact statement filed by lawyers acting for Mango Markets, the exchange asks that, in light of Eisenberg’s conviction, the court grant $47 million restitution to make everyone, “including Mango DAO, whole.”
“Although Eisenberg’s attack cannot be undone, return of the funds he misappropriated is critical to righting his wrong,” Mango Markets said.
Related: Mango Markets heist like a fake diamond ring scam: Prosecutor
“No amount of money will fix the damage that Eisenberg has caused to Mango Markets’ reputation and the suffering his avarice caused, but returning the money, Eisenberg made off with will at least help.”
Authorities arrested Eisenberg in December 2022. After his conviction, his sentencing has been postponed multiple times.
Initially, it was scheduled for Dec. 12, 2024, but it was later delayed to Feb. 11, 2025, and April 10, 2025. Eisenberg’s legal team said the complexity of the sentencing issues caused the delays.
Magazine: Ethereum maxis should become ‘assholes’ to win TradFi tokenization race
