Crypto scammer Avi Eisenberg has been convicted on multiple charges related to fraud and market manipulation on the decentralized exchange Mango Markets. Eisenberg faces a maximum penalty of 10 years in prison for commodities fraud and manipulation, as well as a maximum of 20 years for wire fraud. The scheme not only affected investors and trading activities but also forced the exchange to halt operations due to insolvency caused by Eisenberg’s actions.

While the crypto enthusiasts have shifted their focus to AI, the true scammers are now being exposed. The U.S. Justice Department highlighted this case as the first of its kind, emphasizing the severity of Eisenberg’s manipulative trading scheme that defrauded the exchange and investors of $110 million.

Principal Deputy Assistant Attorney General Nicole M. Argentieri stated, “Manipulative trading poses a significant risk to our financial markets and investors.” The successful prosecution of Eisenberg sets a precedent in combating cryptocurrency manipulation through open-market trades, showcasing the Justice Department’s dedication to safeguarding U.S. financial markets and holding perpetrators accountable for their fraudulent activities.

U.S. Attorney Damian Williams for the Southern District of New York announced Eisenberg’s unanimous guilty verdict in the groundbreaking cryptocurrency open-market manipulation case. This milestone prosecution underscores the office’s commitment to leveraging innovative approaches and advanced law enforcement tools to protect financial markets. The prosecutors remain steadfast in their pursuit of financial fraud cases, sending a clear message to potential offenders that illicit activities will not go unpunished.