Avraham Eisenberg, 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 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, but earlier documents revealed that the material was discovered on Eisenberg’s cell phones and laptops during a search related to the original charges of market manipulation and fraud.
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 also include the conviction for fraud and market manipulation. The severity of the allegations surrounding child pornography further compounds 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.
The Mango Markets exploit occurred on October 11, 2022, where approximately $110 million was drained from its treasury. Eisenberg later came forward as the perpetrator, claiming the exploit was a “highly profitable trading strategy” conducted within the bounds of legality and the protocol’s intended design. Prosecutors alleged that Eisenberg used two accounts to engage in manipulative trading involving futures contracts tied to the values of Mango’s token MNGO and the stablecoin USD Coin. These trades inflated the value of his contracts by 1,300% within 20 minutes, enabling him to withdraw $110 million in various cryptocurrencies.
Following the attack, Eisenberg agreed to return $67 million in exchange for other token holders refraining from pursuing legal action or freezing his assets. He was arrested in San Juan, Puerto Rico, on December 26, 2022, and has been in custody since then. The Commodity Futures Trading Commission added two counts of market manipulation to the charges filed by the FBI. A lawsuit 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 Eisenberg adds a new dimension to his legal troubles, further complicating an already significant case involving fraud and market manipulation. The possession of illegal material depicting minors under the age of 12 raises serious concerns and reflects poorly on Eisenberg’s character. These charges will likely impact his legal proceedings and potential sentencing, as they introduce a new aspect of criminal activity for which he must account.
Overall, Eisenberg’s case involves multiple layers of criminal activity, from the initial fraud and market manipulation charges to the subsequent child pornography allegations. The complexity of the case, along with the substantial financial losses incurred by Mango Markets and other affected parties, underscores the seriousness of Eisenberg’s actions. As the legal process unfolds, the full extent of Eisenberg’s crimes and the consequences he will face will become clearer, shedding light on the impact of his illicit activities on the cryptocurrency community and beyond.
