Avraham Eisenberg, who was recently convicted of fraud and market manipulation in connection with a $110 million heist from Mango Markets, is now facing additional charges of possessing child pornography. Court documents released on April 26 allege that Eisenberg had images in his possession depicting prepubescent minors under the age of 12. These allegations have yet to be proven in court. The material was initially discovered on Eisenberg’s cell phones and laptops during a search related to the charges of market manipulation and fraud. Subsequently, the government obtained a second warrant in February 2023 to expand the scope of the investigation specifically for evidence related to the possession and receipt of child pornography. Investigative journalist Christopher Brunet was the first to report on the child pornography charges, claiming to have screenshots of Eisenberg engaging in disturbing conversations about children. These charges are a significant development in Eisenberg’s legal troubles, which already included the conviction for fraud and market manipulation, further complicating the seriousness of the case.
Eisenberg has been found guilty in a Manhattan federal court for orchestrating a scheme that resulted in the theft of approximately $110 million from the Solana-based DeFi platform, Mango Markets. Prosecutors argued that Eisenberg orchestrated a complex exploit on the platform, leading to substantial financial losses. Eisenberg, who has been in custody since January 2023, could face a maximum sentence of 20 years in prison. The attack on Mango Markets occurred on October 11, 2022, where approximately $110 million was drained from its treasury. Eisenberg came forward as the perpetrator, claiming the exploit was a “highly profitable trading strategy” conducted within legal bounds. Prosecutors alleged that Eisenberg utilized two accounts to engage in manipulative trading involving futures contracts tied to the values of Mango’s token MNGO and the stablecoin USD Coin, inflating the value of his contracts by 1,300% within 20 minutes, enabling him to withdraw $110 million in various cryptocurrencies. Eisenberg agreed to return $67 million in exchange for other token holders refraining from pursuing legal action or freezing his assets. He was arrested on December 26, 2022, in San Juan, Puerto Rico, where he resided, and has remained in custody since then, deemed a flight risk by prosecutors. The Commodity Futures Trading Commission (CFTC) supplemented the FBI’s charges, levying two counts of market manipulation against Eisenberg. A lawsuit filed by Mango Labs described Eisenberg as a “notorious online personality” with a history of attacking multiple cryptocurrency platforms and manipulating cryptocurrency markets.
The emergence of child pornography charges against Avraham Eisenberg marks a significant escalation in his legal troubles, adding to the severity of the allegations surrounding fraud and market manipulation. These charges have yet to be proven in court, but court documents allege that Eisenberg possessed images depicting prepubescent minors under the age of 12 on his cell phones and laptops. Investigative journalist Christopher Brunet reported on Eisenberg engaging in disturbing conversations about children, further complicating the case. Eisenberg’s conviction for orchestrating a scheme resulting in the theft of $110 million from Mango Markets has landed him in significant legal trouble. Prosecutors argued that he manipulated the platform to inflate the value of his contracts by 1,300% within 20 minutes, enabling him to withdraw the substantial sum in various cryptocurrencies. Eisenberg has been in custody since January 2023 and faces a maximum sentence of 20 years in prison. The attack on Mango Markets occurred on October 11, 2022, and Eisenberg claimed it was a lawful trading strategy, but prosecutors disagreed, leading to his arrest and subsequent legal battles. The involvement of the Commodity Futures Trading Commission (CFTC) and the FBI in the case further underscores the seriousness of the allegations against Eisenberg in both the fraud and market manipulation charges as well as the recently added child pornography charges.
