Crypto Trader Eisenberg Convicted of Fraud in $110 Million Mango Markets Scheme (axios.com) 9
A jury found Avraham "Avi" Eisenberg guilty on all three counts of fraud and manipulation in a $110 million crypto trade scheme using the Mango Markets platform. Axios: The case was the first known test for a jury to decide whether existing U.S. laws governing fraud and market manipulation apply to the world of decentralized finance (DeFi). The 28-year-old Eisenberg will be held to account for his actions on Oct. 11, 2022, when a series of trades he made intentionally boosted the price of Mango Markets' native token, MNGO, as well as the price of futures contracts.
He used the inflated futures holdings as collateral to borrow other cryptocurrencies on the platform, then quickly withdrew those assets and walked away from his collateral. Eisenberg never disputed the facts of the strategy but contended that what he did was legal and permitted by the DeFi protocol, a principle in the industry known as "code is law." U.S. laws apply to DeFi: "Avraham Eisenberg ran a con," prosecutors said Wednesday, during closing arguments, continuing its momentum from last week. The word "con" was used at least six more times in those remarks.
He used the inflated futures holdings as collateral to borrow other cryptocurrencies on the platform, then quickly withdrew those assets and walked away from his collateral. Eisenberg never disputed the facts of the strategy but contended that what he did was legal and permitted by the DeFi protocol, a principle in the industry known as "code is law." U.S. laws apply to DeFi: "Avraham Eisenberg ran a con," prosecutors said Wednesday, during closing arguments, continuing its momentum from last week. The word "con" was used at least six more times in those remarks.
All of it (Score:5, Insightful)
All Crypto is a "con".
Eisenberg Uncertainty Principle (Score:4, Funny)
Weird defense (Score:2)
Eisenberg never disputed the facts of the strategy but contended that what he did was legal and permitted by the DeFi protocol, a principle in the industry known as "code is law."
Does he really think that this "code is law" grants him immunity from the law of the land? It would be the same if I dropped a brick on someone's head, killing him, and then told the court that what I did was legal, because "laws of nature" and in particular "Newton's law of gravitation" enabled me. I would see my azz in prison before I could blink twice.
Re: (Score:2)
The whole industry is a giant decentralized scam (Score:2)
It's about time everybody realize there's very little going on in the crypto industry that's not fraud and grift.
Here is a great documentary explaining why [youtube.com]. It's a shame it isn't getting the attention it deserves, but I guess crypto companies are still prime advertisers in mainstream media and nobody wants to bite the hand that feeds.