Avraham “Avi” Eisenberg, the man behind the high-profile Mango Markets exploit, could soon be facing a prison sentence of over six years as U.S. prosecutors push for a significant penalty ahead of his May 1 sentencing hearing.
In an April 22 filing, federal prosecutors urged New York District Court Judge Arun Subramanian to hand down a sentence of 78 to 97 months roughly six and a half to eight years. They argue that Eisenberg’s actions during the 2022 attack on the Solana-based decentralized finance (DeFi) platform were not a clever arbitrage, but a carefully planned scheme that defrauded investors of more than $100 million.
“Fraud that takes over $100 million from investors and effectively shuts down a business is a shocking violation of criminal law,” the prosecutors wrote in the filing.
Eisenberg was convicted in April on multiple charges, including wire fraud, commodities fraud, and market manipulation. The case centered on his manipulation of Mango Markets’ governance token, MNGO, which he used to artificially inflate collateral and drain the platform’s treasury. Despite returning around $67 million following a DAO vote, prosecutors argue this was done under coercion, likening it more to a “ransom note” than a genuine restitution effort.
Adding to the severity of the case, prosecutors cited Eisenberg’s separate guilty plea in a child exploitation case, though they stressed that even without considering that conviction, the fraud alone warrants a lengthy prison term.
The government’s case detailed how Eisenberg employed false identities, bypassed Know Your Customer (KYC) checks, and masked his location to avoid detection. It also highlighted Discord chats where he openly discussed the exploit in advance, revealing a strategy to “buy a ton, massively increase the price, and borrow on lending,” admitting that there was no need to sell the assets to execute the attack.
Further intensifying the charges, evidence showed that Eisenberg researched fraud laws before the exploit and fled to Israel just hours after being publicly identified, actions that prosecutors argue clearly demonstrated his awareness of wrongdoing.
Meanwhile, a separate victim impact statement filed by Mango Markets’ legal team called for Eisenberg to pay $47 million in restitution. They emphasized that returning the stolen funds is crucial to making the platform’s community whole, even though the damage done cannot be fully undone.
Mango Markets ultimately shut down in early 2025 following a community vote, citing the lasting damage caused by the exploit and ongoing legal battles.
As the May 1 hearing approaches, the crypto industry is closely watching the case, which could set a precedent for how courts handle DeFi exploits and fraud in the cryptocurrency sector.
