Mango Markets exploiter Avraham Eisenberg sentenced to four years for child sexual abuse material: Inner City Press

Avraham "Avi" Eisenberg, who was accused of being behind the multi-million dollar exploit of Mango Markets, was sentenced to just over four years on Thursday for a separate case involving possessing child sexual abuse material, according to reporting from Inner City Press. 

Eisenberg was convicted in April 2024 of executing a manipulative scheme on the DeFi platform to exploit $110 million. He was ultimately found guilty of commodities fraud, commodities manipulation, and wire fraud.

When he was arrested, prosecutors said they obtained a search warrant for Eisenberg's electronic devices, which is where they found the child sexual abuse material, according to a recent filing.  

"Agents identified approximately 1,274 images and videos of child sexual abuse material, which the defendant downloaded between 2017 and 2022," they said. 

According to that filing, Eisenberg previously pled guilty to one count of information charging him with obtaining the explicit material between 2017 and 2022.

The Mango exploit 

Mango Markets was exploited in October 2022 after the price of MANGO, the platform's native token, was artificially pumped. The protocol was then exploited through a bad debt position, when a borrower took funds that would not or could not be paid back, leaving Mango Markets in the hole.

The exploit involved putting $5 million worth of the stablecoin into Mango Markets and then opening a remarkably long position. This caused MANGO's price to jump around 1,000% within an hour, raising the exploiter's collateral value. Then, the exploiter borrowed other tokens on Mango Markets to accrue a large debt position before making off with the funds.

Eisenberg later returned $67 million in funds to Mango Markets, and the protocol's community allowed him to keep $47 million in a governance vote.

The 29-year-old previously fought fraud charges, arguing that his actions were part of a legal group-trading strategy that used the protocol "as designed." Last week, the prosecutor sought an 8-year sentence for Eisenberg, citing "the gravity" of his crimes and saying that Eisenberg knew that his actions were illegal.