Historic Verdict: First-Ever Cryptocurrency Market Manipulation Conviction in New York
16 views 2:35 pm 0 CommentsMay 16, 2024
In a landmark case, a man from Puerto Rico was found guilty by a federal jury in New York for orchestrating a $110 million fraudulent scheme, marking the Department of Justice’s inaugural prosecution of cryptocurrency market manipulation.
Avraham Eisenberg, aged 28 and hailing from San Juan, could potentially face up to 20 years in prison for wire fraud, commodities fraud, and commodities manipulation offenses.
According to prosecutors, Eisenberg deceptively acquired approximately $110 million in cryptocurrency from the Mango Markets platform and its users by artificially inflating the prices of futures contracts and the MNGO crypto token. Subsequently, he leveraged these inflated assets to secure cryptocurrency loans with no intention of repayment, as per the DOJ.
The Manhattan U.S. Attorney’s Office highlighted that Eisenberg’s actions involved borrowing cryptocurrency without any plans for reimbursement, indicating a clear intent to misappropriate the funds.
U.S. Attorney Damian Williams emphasized the significance of the case, stating that Avraham Eisenberg was unanimously convicted by the jury in the pioneering trial centered on cryptocurrency market manipulation.
Williams commended the prosecution as a testament to the office’s innovative enforcement strategies and advanced tools aimed at safeguarding financial markets.
Avraham Eisenberg is set to receive his sentencing on July 29 at the federal court in Manhattan.
Stay tuned for further updates on this developing story.
