Track market-moving stories before they get noisy

Amin Ayan

Crypto Journalist

Amin Ayan

Part of the Team Since

Apr 2025

About Author

Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has...

Has Also Written

Last updated: 

May 25, 2025

Key Takeaways:

A federal judge overturned Avraham Eisenberg’s fraud and manipulation convictions in the $110M Mango Markets case. The court accepted Eisenberg’s defense that he used flawed but legal smart contract mechanics rather than committing fraud. Despite the ruling, Eisenberg remains in prison on child pornography charges. A US federal judge has thrown out major convictions against Avraham Eisenberg, the man accused of exploiting decentralized exchange Mango Markets for $110 million.

On Friday, Judge Arun Subramanian vacated Eisenberg’s convictions for commodities fraud and market manipulation, stating that prosecutors failed to prove he made materially false representations.

The court also acquitted Eisenberg of a third charge, leaving the government’s case significantly weakened.

Eisenberg Used Token Pump to Drain $110M from MangoEisenberg had been found guilty in April 2024 after a jury concluded he manipulated Mango’s MNGO token price by over 1,300% within minutes.

He then used the inflated value as collateral to drain the protocol of $110 million in crypto.

While the Department of Justice framed the act as a calculated deception of a smart contract system, Eisenberg’s defense insisted he simply took advantage of flawed but open code — without lying or misleading the protocol.

Judge Subramanian sided with this view, noting that the platform was “permissionless and automatic,” making it difficult to establish a legal basis for fraud. “There was insufficient evidence of falsity,” he wrote.

Everything we've been told about "Code is Law" defense not standing a chance in court has been a lie. Mango Markets / Avi Eisenberg charges just been dropped by a federal charge.

The same logic used to dismiss the case can be used for pretty much any permissionless DeFi… pic.twitter.com/yWIUnmAUxX

— Trust (@trust__90) May 24, 2025 The ruling also rejected New York as the proper venue for the trial.

Eisenberg was based in Puerto Rico during the trades, and the judge dismissed the DOJ’s attempts to tie the case to the state through a Mango user in Poughkeepsie and a third-party service provider in Manhattan.

The vacated charges now leave the Justice Department to decide whether to pursue the case again.

However, recent signals from the Trump administration suggest a cooling stance on crypto-related enforcement.

Eisenberg Remains in Prison for Child Pornography PossessionDespite the court win, Eisenberg remains in federal custody. Earlier this month, he was sentenced to nearly four years in prison on an unrelated charge of child pornography possession, based on evidence found during his 2022 arrest in Puerto Rico.

Eisenberg still faces separate civil cases brought by the SEC and CFTC.

On October 11, 2022, Mango Markets was the victim of an attack in which approximately $110 million was drained from its treasury.

Shortly after the attack, Avraham Eisenberg came forward as the perpetrator, asserting that the exploit was merely a “highly profitable trading strategy” and claiming it was conducted within the bounds of legality and the protocol’s intended design.

According to prosecutors, 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.

Last month, US federal prosecutors asked for a prison sentence of up to 6.5 years for Eisenberg.

In their filing, prosecutors emphasized the severity of Eisenberg’s actions, stating that his scheme not only defrauded investors of over $100 million but also forced Mango Markets to shut down.

In brief A hacker exploited Solana-based decentralized exchange Mango Markets back in 2022. Crypto trader Avraham Eisenberg was convicted last year. But a judge has vacated Eisenberg's fraud and manipulation charges. A trader who was convicted of manipulating Solana-based decentralized exchange Mango Markets to pinch $110 million in crypto had his conviction overturned on Friday. 

A jury last year convicted Avraham Eisenberg on counts of commodities fraud, commodities manipulation and wire fraud after he exploited the DeFi app, the sort that allows for the trading and lending of crypto assets without third-party intermediaries such as banks. 

Eisenberg exploited a feature in the decentralized exchange—or DEX—that allowed him to artificially pump his collateral to trick the protocol into allowing him to "borrow" $110 million in crypto.

But a U.S. judge on Friday sided with Eisenberg, and scrapped his fraud and manipulation convictions on the basis that the evidence in the trial was not able to support the jury's decision that he was guilty. 

In short, Judge Arun Subramanian wrote that the rules for the DeFi app were vague. "Mango Markets had no rules and no one testified that Mango Markets users understood borrowing to reflect an intent to repay," Friday's ruling read. 

He noted that Eisenberg's defense relied "on the lack of any terms and conditions on the platform and the fact that Mango Markets was permissionless and automatic."

In the crypto space, DeFi is the industry that aims to replace traditional financial services, like brokerages and banks. 

Via apps—such as exchanges like Mango Markets—users can make financial transactions without a middleman, and take out loans or trade digital tokens permissionlessly, typically without disclosing personally identifiable information like names, email addresses, or physical addresses. 

The fast-moving and experimental space is notoriously prone to hacks, and tales of users losing money are all too common. 

Legal experts with whom Decrypt spoke had differing views on how fair Eisenberg's outcome was. 

Andrew Rossow, cyberspace and public affairs attorney with Rossow Law, said: "The original promise of cryptocurrency was accessibility and empowerment. Today, however, digital assets have become increasingly opaque, inaccessible, and misunderstood by the very consumers they were meant to serve."

"The average individual is not only excluded from meaningful participation but is also left vulnerable to exploitation by sophisticated actors who operate with impunity," he continued, adding that people in positions of power—such as President Donald Trump—were "prioritizing personal enrichment over principled governance in the digital asset space."

Regulators and law enforcement have taken a softer approach to managing the fast-moving and convoluted space this year. 

Under crypto-friendly President Trump—who himself has backed a DeFi project—regulators have scrapped a number of high-profile lawsuits against crypto companies and entrepreneurs. 

The new commander in chief has also cashed in on the space, launching a meme coin ahead of his inauguration—drawing ire from Democrats. 

Jeffrey Leavitt, an associate at Vedder Price, told Decrypt that while the Mango Markets case was worrying for DeFi founders, the judge got it right. 

"Eisenberg was able to exploit errors in the underlying code for the Mango Markets protocol, inflate the value of the MNGO token, and withdraw collateral against MNGO tokens that were artificially inflated," he said. "Under that framework, I don’t think there was evidence to support a fraud conviction." 

But he added: "The Mango Markets saga is a cautionary tale to DeFi founders—one error in the code can be fatal to the protocol."

Prior to his arrest and original conviction, Eisenberg bragged about his actions on Mango Markets and taunted fellow users: "What are you gonna do, arrest me?" he famously tweeted at the time. 

It now seems his bravado may have been on point. Except for one thing: Eisenberg still faces four years in prison for possession of child pornography, found on his computer during the investigation.

Daily Debrief NewsletterStart every day with the top news stories right now, plus original features, a podcast, videos and more.

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

Part of the Team Since

Jan 2024

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

Has Also Written

Last updated: 

June 20, 2025

Mango Network, a rising Layer 1 blockchain project, on Friday announced a community airdrop ahead of its Token Generation Event. The team will distribute 5% of its total $MGO supply to early users, testnet participants, and community contributors.

The eligibility checker is now live, where users can connect their wallets and complete a three-step process to confirm and eventually claim their rewards.

Distribution begins on June 24, with tokens issued in the order of claim.

To begin, users must “bind” their Twitter accounts, which involves linking their Twitter profile to Mango’s platform to verify their identity and activity. They must also follow BeingDEX, Mango’s ecosystem partner.

Mango Network TGE and Airdrop is coming. Check your eligibility for $MGO now!

Thank you for being with us every step of the way. You helped build this, and now it’s time to witness the rewards.

⚠️ Note: Claiming will open after TGE. Please be aware of scams.

— Mango Network (@MangoOS_Network) June 20, 2025 Airdrop Claiming Starts June 24, With Eligibility Based On Weighted PointsAfter linking their profile, users can proceed to verify their airdrop share. A countdown timer on the site marks the time left to confirm eligibility.

Then, users can view and confirm their airdrop share. Once confirmed, the final step will allow users to claim their rewards when the claim window opens at 17:50 UTC on June 24.

Unlike typical airdrops based solely on point totals, Mango uses a weighted system. Token allocation will reflect not just the number of points a user has, but also the quality of their testnet participation and any community roles they held, such as OG status.

All Tokens To Be Unlocked At Claim, With Caution Urged Against FraudAll tokens will be fully unlocked at the time of distribution. However, the team has urged users to remain cautious of scams. They said that only official Mango channels should be trusted for claiming instructions.

Meanwhile, Mango Network has positioned itself as a next-generation blockchain. It aims to solve two of Web3’s toughest problems — fragmented liquidity and poor user experience. To do this, the project uses a multi-VM, full-chain infrastructure. This design promises a smoother experience for both developers and users.

Now, with the airdrop underway, Mango is rewarding those who helped build its foundation. At the same time, it offers a glimpse into what the future of its ecosystem could look like.

The blockchain industry continues to grapple with fundamental scalability and interoperability challenges that have persisted since Ethereum's early days. High transaction fees, slow confirmation times, and isolated ecosystems create barriers preventing mainstream adoption of decentralized applications. Mango Network, a new Layer 1 blockchain built by MangoNet Labs, claims to solve these problems through an ambitious technical architecture that combines multiple virtual machines, cross-chain functionality, and throughput capabilities that dwarf existing solutions.

With $13.5 million in funding, Mango Network promises to process 297,450 transactions per second with 380-millisecond finality while supporting both Ethereum Virtual Machine (EVM) and Move Virtual Machine (MoveVM) in a unified ecosystem. These bold claims arrive alongside the project's Token Generation Event on June 24, 2025, when $MGO tokens begin trading on Bitget, MEXC, and KuCoin at 09:00 AM UTC.

But technical specifications alone don't guarantee success in the competitive Layer 1 landscape. This analysis examines Mango Network's architecture, tokenomics, and real-world potential to determine whether it represents genuine innovation or another case of blockchain hype exceeding reality.

Technical Architecture: Multi-VM InnovationThe Move Programming Language AdvantageMango Network implements "Mango Move," an enhanced version of the Move programming language originally developed by Facebook for the Diem project. Move was designed specifically for digital assets, treating tokens and NFTs as "first-class citizens" in the programming model.

This resource-oriented approach provides several critical advantages:

Ownership Safety: Digital assets are represented as resources that cannot be copied or implicitly discarded, preventing double-spending attacksStatic Typing: Every variable's type is known at compile time, eliminating entire categories of runtime bugs that have plagued other smart contract platformsFormal Verification: The Move Prover tool mathematically verifies smart contract behavior before deployment, allowing developers to specify contract logic in formal termsModular Design: Smart contracts can be safely upgraded and composed without breaking existing functionalityDual Virtual Machine ImplementationWhile Move provides superior security for financial applications, Mango Network recognizes that most existing DeFi protocols and tools are built for the Ethereum Virtual Machine. Rather than forcing developers to choose between security and compatibility, Mango implements both EVM and MoveVM within the same blockchain.

This dual-VM approach works through parallel execution, allowing EVM-based applications to operate alongside Move-based contracts without interference. Each VM maintains its own state space while sharing the underlying blockchain infrastructure. Mango's OP-Mango Layer 2 solution facilitates communication between EVM and MoveVM environments through standardized event capture and data serialization protocols.

The platform implements sophisticated resource allocation to prevent one VM from monopolizing network capacity. Transaction fees and execution limits are balanced across both environments to maintain fair access, while both virtual machines access a shared data availability layer to ensure state changes in one environment are visible to the other when needed.

Modular ArchitectureTraditional blockchains bundle multiple functions into single systems that become difficult to optimize. Mango separates four core functions: execution handles smart contract computation, consensus manages validator coordination through DPoS, settlement provides final transaction confirmation, and data availability stores transaction information across the network.

This separation allows each component to optimize independently while maintaining system integrity. The claimed 297,450 TPS throughput depends on this modular design, though real-world performance often differs from theoretical maximums.

Mango’s chain infrastructure (official website)Cross-Chain Infrastructure and Zero-Knowledge IntegrationCross-Chain Infrastructure and Privacy FeaturesOP-Mango powers cross-chain functionality by processing transactions off-chain in batches before submitting results to networks like Ethereum. The system uses $MGO tokens as gas for cross-chain operations, includes fraud proof mechanisms, and enables asset transfers between different blockchains while maintaining security through cryptographic verification.

Privacy and Storage FeaturesThe platform incorporates ZK-SNARK and ZK-STARK technologies for privacy-preserving transactions and cross-chain transfers. Users can trade anonymously or move assets between chains without revealing transaction details. The platform also uses decentralized storage with data backups and economic incentives for storage providers who earn $MGO tokens for maintaining data availability.

MgoDNS represents the platform's decentralized domain name system that bridges traditional internet and blockchain environments. The system can resolve standard internet domain names while adding blockchain-specific features. For example, a single domain name like "alice.mgo" could resolve to wallet addresses on multiple different blockchains. Smart contracts can also automatically update these domain resolutions based on programmed conditions.

Tokenomics Deep DiveDistribution Strategy and Economic ModelThe $MGO token's 10 billion total supply with immediate full unlock represents a significant departure from typical token release schedules. This strategy reflects specific theories about token velocity and network adoption but creates substantial economic risks.

The comprehensive distribution allocates tokens across eight categories. The Foundation receives 20% (2 billion tokens) for long-term development and operations, while the POS Stake Pool gets an equal 20% for network security and validator rewards. The Ecosystem Innovation Fund holds 17% (1.7 billion tokens) for dApp development and partnerships, indicating serious commitment to ecosystem growth.

Private investors receive 15% (1.5 billion tokens) from the $13.5 million funding round, which means these tokens face immediate unlock and potential selling pressure. The team and early contributors also get 15%, which raises questions about long-term alignment incentives given the lack of vesting schedules.

Community airdrops represent 10% of the total supply, split equally between testnet (500 million tokens) and mainnet (500 million tokens) participants. Claims open at 17:50 UTC on June 24, 2025, on a first-come, first-served basis.

Advisors receive the smallest allocation at 3% (300 million tokens), suggesting they provide primarily strategic rather than operational value.

Token Utility and Value DriversThe $MGO token serves multiple functions that should create various sources of demand:

Transaction Fees: All network operations require $MGO for gas, creating baseline demand that scales with network usageCross-Chain Operations: OP-Mango uses $MGO as universal gas for cross-chain transactions, potentially driving significant demand as interoperability growsNetwork Security: Validators must stake $MGO to participate in consensus, removing tokens from circulation while earning staking rewardsGovernance Rights: Token holders vote on protocol changes and parameter updates, giving $MGO value beyond pure utilityEcosystem Integration: Various protocols within Mango may incorporate $MGO into their own tokenomics, creating additional demand sourcesHowever, the immediate unlock strategy creates several economic risks. Ten billion tokens entering circulation simultaneously could overwhelm demand, particularly if early participants rush to realize profits. The large ecosystem fund allocation assumes rapid adoption and development activity, but if ecosystem growth lags expectations, these tokens could become a prolonged source of selling pressure.

Competitive Analysis and Market PositioningLayer 1 Competition LandscapeMango Network enters a crowded Layer 1 market where established players maintain significant advantages through developer adoption, total value locked, and ecosystem maturity. Ethereum retains the largest developer ecosystem despite high fees and scaling challenges, while Solana offers high throughput with a proven track record, though it has faced network stability issues.

Move-based competitors Aptos and Sui both use variations of the Move programming language with different approaches. Mango's dual-VM approach differentiates it from these competitors but also adds complexity.

The platform's claimed 297,450 TPS represents a significant improvement over most existing networks, but these theoretical maximums require validation under real-world conditions. Mango's omni-chain vision competes with established interoperability solutions like Cosmos and Polkadot, which offer cross-chain functionality through different technical approaches. Success will depend on whether Mango's integrated approach provides meaningful advantages over existing solutions and whether developers find the multi-VM architecture compelling enough to overcome the momentum of established platforms.

Security Audit and Development TeamProfessional Security ReviewMango Network underwent comprehensive security audits by MoveBit, a recognized blockchain security firm. The project completed two separate audits: a core network audit (April 7-19, 2024) and a dedicated bridge audit (December 9, 2024 - January 6, 2025), demonstrating thorough security coverage across all critical components.

The core network audit employed multiple testing methodologies including dependency checks, static code analysis, fuzz testing, and manual code review. Results were notably positive, with only two issues identified - zero critical vulnerabilities, one major issue, and one informational finding. Both issues were resolved before mainnet launch.

The bridge audit was more comprehensive, identifying seven issues across different severity levels, including one critical vulnerability related to signature replay attacks. However, all seven issues were successfully fixed before deployment. The bridge audit covered cross-chain functionality between Sui, Ethereum, and Mango chains, ensuring secure asset transfers across the platform's multi-chain architecture.

MoveBit's reviews covered execution layers, consensus mechanisms, cross-chain infrastructure, and external dependencies, providing confidence in the platform's security foundation across both core functionality and critical bridge operations.

Development Team and LeadershipThe project maintains transparency through visible leadership, including CEO Benjamin Kittle and CTO David Brouwer. Brouwer brings relevant technical expertise in Move programming and high-performance systems development. The team's commitment to open-source development is evident through their active GitHub repository with multiple branches and version tags, indicating ongoing development activity.

The development process emphasizes academic research and formal verification tools, with Move Prover being actively maintained as an open-source component. This approach aligns with the technical rigor required for the platform's ambitious multi-VM architecture.

Ecosystem Applications and Adoption StrategyDeFi and Cross-Chain Use CasesTraditional DeFi operates in a multi-chain environment where protocols deploy separate instances on different blockchains, creating liquidity silos and forcing users to manage assets across multiple environments. Mango Network's omni-chain approach promises unified liquidity pools that can access assets from multiple blockchains simultaneously.

For example, a lending protocol on Mango could theoretically accept Bitcoin collateral, Ethereum-based tokens, and Solana assets within the same pool, dramatically expanding available liquidity. However, this vision requires solving challenges around asset price synchronization, bridge security, and regulatory complexity across multiple jurisdictions.

The platform's high throughput and low fees also make it suitable for gaming applications that require frequent microtransactions. Dynamic NFTs that change properties based on player actions or cross-game interactions become feasible, potentially creating shared gaming economies where assets move between different games.

Enterprise Integration PotentialMgoDNS represents the platform's decentralized domain name system that bridges traditional internet and blockchain environments. The system can resolve standard internet domain names while adding blockchain-specific features. For example, a single domain name like "alice.mgo" could resolve to wallet addresses on multiple different blockchains. Smart contracts can also automatically update these domain resolutions based on programmed conditions.

Companies could potentially manage tokenized assets through familiar web interfaces backed by blockchain security, or integrate blockchain tracking into existing supply chain systems without complete infrastructure overhauls. However, enterprise adoption typically requires proven security track records and regulatory clarity that new platforms lack.

The success of these applications depends on more than technical capability. User experience factors, regulatory compliance, and integration with existing business processes often determine adoption rates more than underlying technical performance.

Investment Analysis and Risk AssessmentBull Case for Mango NetworkThe platform addresses real problems in current blockchain infrastructure through technical innovation that, if executed successfully, could provide sustainable competitive advantages. Growing demand for cross-chain functionality creates market opportunities for platforms that deliver seamless omni-chain experiences.

Positive Development IndicatorsThe platform demonstrates several encouraging signals for potential success. The MoveBit security audits, with minimal findings, suggest solid code quality and development practices. The $13.5 million funding provides adequate resources for ecosystem development, while the substantial ecosystem fund allocation indicates a serious commitment to attracting developers and applications.

Active GitHub development with multiple branches and regular commits shows ongoing technical progress. The team's emphasis on formal verification through Move Prover and academic research references suggests a rigorous approach to blockchain development that could appeal to institutional users and serious DeFi protocols.

The blockchain infrastructure market continues to grow rapidly, with room for multiple successful Layer 1 platforms serving different use cases and user segments. If Mango can prove its technical claims and attract quality developers, it could capture significant market share in the cross-chain and high-performance blockchain segments.

Risk Factors and ConcernsThe technical complexity of supporting multiple VMs and seamless cross-chain functionality creates significant execution risk. Many blockchain projects fail to deliver on ambitious technical promises, and Mango's scope increases both potential impact and failure risk.

Established Layer 1 platforms have network effects, developer mindshare, and institutional relationships that will be difficult to overcome regardless of technical superiority. The immediate unlock of all tokens creates significant downside risk and suggests either overconfidence in immediate adoption or inexperience with token economic best practices.

Cross-chain functionality and privacy features may face regulatory challenges that could limit adoption or require costly compliance modifications. The Layer 1 blockchain market may also be approaching saturation, with limited room for new entrants to achieve meaningful market share and developer adoption.

ConclusionMango Network presents a technically sophisticated approach to Layer 1 blockchain infrastructure through its multi-VM architecture, comprehensive cross-chain functionality, and strong security foundation. The platform's clean audit results from MoveBit, transparent development practices, and substantial funding provide a solid foundation for ecosystem growth.

While the immediate token unlock strategy and competitive market dynamics present challenges, the project's technical innovations address real problems in current blockchain infrastructure. The combination of Move programming language security, EVM compatibility, and omni-chain capabilities could provide meaningful advantages if properly executed and adopted.

The June 24, 2025 token launch will provide important market feedback on investor and user interest. Early performance metrics, developer adoption rates, and the platform's ability to deliver on its high-throughput promises will be key indicators of long-term viability and success in the competitive Layer 1 landscape.

For more information about Mango Network and airdrop eligibility, visit mangonet.io, or for updates, follow @MangoOS_Network on X.

PANews reported on December 19th that, according to GlobeNewswire, Nasdaq-listed Mangoceuticals (MGRX) announced a partnership with Cube Group to launch a $100 million Solana-focused Digital Asset Vault (DAT) strategy through its newly established subsidiary, Mango DAT, LLC. This strategy will be deployed at high yields within the Solana ecosystem, aiming to generate non-dilutive returns for shareholders and achieve asset diversification and volatility hedging through the MULTI-DAT framework. The initial strategy targets an annualized staking yield of 7–8%, which can be increased to 8–20% through active management.

Prosecutors are appealing the acquittal of theMango Markets exploiter.A judge overturned jurors’ conviction of fraud and market manipulation last year.But the judge “ignored critical evidence” against Avraham Eisenberg, prosecutors argue.Prosecutors have appealed the acquittal of Mango Markets exploiter Avraham Eisenberg, arguing a judge’s decision to overturn Eisenberg’s wire fraud conviction last year “would unsettle traditional understandings of fraud.”

If successful, prosecutors’ appeal will undo a rare courtroom victory for proponents of the theory that “code is law” — that any activity on blockchain-based software is permissible as long as it follows the logic set out in the underlying code.

Eisenberg currently serves a four-year sentence for possession of child sexual abuse material that was discovered when he was arrested in connection with the exploit of Mango Markets in 2022.

Although he pleaded guilty to possession of child sexual abuse material, Eisenberg fought charges of fraud and market manipulation — and lost.

Eisenberg maintained the $110 million heist in October 2022 was a “successful and legal trading strategy” that exploited a flaw in Mango Markets’ design.

But jurors sided with the prosecutors, who argued that Eisenberg’s actions amounted to old-fashioned fraud and market manipulation, even if they took place on a blockchain. In 2024, they found him guilty of commodities fraud, commodities market manipulation, and wire fraud.

In a remarkable twist last year, federal judge Arun Subramanian vacated Eisenberg’s conviction on the commodities charges and acquitted him of the wire fraud charge.

The judge said Eisenberg couldn’t have defrauded Mango, a self-executing DeFi protocol, because he had merely taken advantage of a flaw in its design, and the service lacked any terms that forbade his behaviour.

The exploit and the judgeEisenberg exploited a flaw in Mango Markets’ design by trading with himself to inflate the value of the protocol’s token, MNGO.

Prosecutors say he was then able to use MNGO perpetuals as collateral to borrow crypto worth about $110 million from the protocol’s users with “no intention of repaying them.”

“There was no evidence at trial that Mango Markets required any user to promise that they would repay funds as a condition of borrowing against their assets, so this isn’t a case where ‘a contractual promise was made,’” the judge wrote.

Hello! This chart will be available in a few moments

Crypto deposited in Mango Markets plunged after the exploit. Moreover, “there was no evidence that the ‘borrow’ function on Mango Markets entailed an obligation to repay — or any other obligation for that matter — even if that’s how the term is conventionally understood.”

That is, in part, because Mango Market had no terms of service, according to the judge.

“There was just the word ‘borrow.’ That word could have been ‘access collateral,’ ‘utilise assets,’ or anything else for that matter.”

The government argued that by hitting the “borrow” button, Eisenberg created the impression his collateral was valuable.

Subramanian dismissed that argument.

“As Eisenberg points out, the platform automatically measured the actual value of his collateral, so he didn’t represent anything untrue,” the judge wrote.

The appeal Prosecutors say Subramanian “ignored critical evidence” and used an overly-narrow reading of the law to reach his conclusion.

“To begin, the plain meaning of the word ‘borrow’ itself conveys an intent to repay, typically with interest, prosecutors wrote in a document filed on December 22.

“And the proof at trial went far beyond the word ‘borrow.’ The Mango Markets user guide defined what borrowing entailed, including stating that borrowers must pay interest and ‘maintain a Health Ratio above 0%” until repaying the loan.’”

Subramanian conveniently ignored those requirements, according to prosecutors.

Moreover, no written loan agreement or formal negotiations — in other words, no contract — is needed to find that one party engaged in fraud, the prosecutors argue.

“Indeed, [Subramanian’s] stilted view of the facts in this case would unsettle traditional understandings of fraud,” they wrote.

“This Court routinely upholds convictions when defendants convince others to invest … even when those promises are not in contracts.”

Prosecutors said the judge’s decision was apparently influenced by the “unconventional context” of the alleged fraud having occurred on a self-executing, blockchain-based application.

But there was nothing unusual about Eisenberg’s alleged fraud, they argue.

“The algorithm was just computer code, which was not meaningfully different from software programmes that people use every day across all facets of the modern economy, such as automated computer programmes used by banks to approve loan applications, or traditional brokerage firms that use computer programs to approve transactions,” prosecutors wrote.

“And just like the programmes used by other entities, the Mango Markets algorithm was controlled by humans who could change or pause the platform — as they did in response to Eisenberg’s scheme.”

Aleks Gilbert is a DeFi Correspondent with DL News. Got a tip? Email him at [email protected].

Related Topics

Source: Binance EN

This is a general announcement. Products and services referred to here may not be available in your region. Fellow Binancians, Binance Wallet is excited to launch the Mango Network Trading Competition on Binance Alpha! During the Promotion Period, trade Mango Network (MGO) in your Binance Wallet (Keyless) or via Binance Alpha to share exclusive token rewards. Any user who is eligible to trade Binance Alpha tokens is eligible to participate in this trading competition. 1st MGO Trading Competition Promotion Period: 2026-01-22 13:00 (UTC) to 2026-01-29 13:00 (UTC)2nd MGO Trading Competition Promotion Period: 2026-01-29 13:00 (UTC) to 2026-02-05 13:00 (UTC) General Rules​​: Participants will be ranked separately in each Promotion Period based on their total purchase volume of MGO tokens during the respective Promotion Period. For each Promotion Period, the top 3,330 users by purchase volume of MGO tokens will share 4,095,900 MGO tokens equally, with each eligible user receiving 1,230 MGO tokens. Please Note:​​ Only trades executed via ​​Binance Wallet (Keyless)​​ or ​​Binance Alpha​​ will qualify in this Promotion. Third-party dApp transactions are excluded.Only cumulative purchases count during the campaign. Selling is excluded.​​No Volume Caps​​: There is no cap on the trading volume for each participant in this Promotion.Transactions related to bridging of tokens are not eligible for this Promotion. How to Participate: Update your Binance App to the latest version, ensure you have created a Binance Wallet (Keyless) and backed it up.During the Promotion Period, trade MGO on Binance Wallet (Keyless) or Binance Alpha. After the Promotion Period ends, rankings will be automatically calculated. Eligible winners can claim their rewards on the event page. Terms & Conditions: These terms and conditions (“Activity Terms”) govern your participation in this activity (“Activity”). By participating in this Activity, users agree to these Activity Terms, and the following additional terms: (a) Binance Terms and Conditions for Prize Promotions (b) Binance Terms of Use; and (c) Binance Privacy Policy; all of which are incorporated by reference into these terms and conditions. In the case of any inconsistency or conflict between these Activity Terms, and any other incorporated terms, the provisions of these Activity Terms shall prevail, followed by the following in this order of precedence, and to the extent of such conflict: (a) Binance Terms and Conditions for Prize Promotions (b) Binance Terms of Use; and (c) Binance Privacy Policy. Only users from qualified regions who complete account verification (KYC) and hold an active Binance Wallet shall be eligible. Users are responsible for informing themselves about and observing any restrictions and/or requirements imposed with respect to the access to and use of Binance services in each country from which the services are accessed. Tokens will not be distributed to users who delete or deactivate their Binance Wallets.Reward Distribution:All rewards will be distributed in MGO tokens, according to the reward distribution mentioned above.Token rewards will be distributed to eligible users before 2026-02-19 13:00:00 (UTC).Eligible winners can check their token rewards directly on their Binance Alpha accounts or Binance Wallet (Keyless).Binance reserves the right to disqualify a user’s reward eligibility if the account is involved in any dishonest behavior (e.g., wash trading, illegally bulk account registrations/logins, self dealing, or market manipulation). Binance further reserves the right to disqualify any participants who tamper with Binance program code, or interfere with the operation of Binance program code with other software.Binance reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these Activity Terms without prior notice, including but not limited to canceling, extending, terminating or suspending this Activity, its eligibility terms and criteria, the selection and number of winners, and the timing of any act to be done, and all users shall be bound by these amendments.There may be discrepancies between this original content in English and any translated versions. Please refer to the original English version for the most accurate information, in case any discrepancies arise. Thank you for your support! Binance Team 2026-01-22 USDC is an e-money token issued by Circle Internet Financial Europe SAS (https://www.circle.com/). USDC’s whitepaper is available here. You may contact Circle using the following contact information: +33(1)59000130 and [email protected]. Holders of USDC have a legal claim against Circle SAS as the EU issuer of USDC. These holders are entitled to request redemption of their USDC from Circle SAS. Such redemption will be made at any time and at par value. Disclaimer: Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Not financial advice. For more information, see our Terms of Use and Risk Warning. Binance Wallet is an optional product. It is your responsibility to determine if this product is suitable for you. Binance is not responsible for your access or use of third-party applications (including functionality embedded within the Binance Wallet) and shall have no liability whatsoever in connection with your use of such third-party applications, including, without limitation, any transactions you dispute. Please carefully review the Terms of Use and Risk Warning and always do your own research. Binance Alpha features emerging digital assets which are not listed on the Binance Exchange and which are generally expected to have a low market capitalisation and unique or novel characteristics. The inclusion of a digital asset as a Binance Alpha asset does not in any way imply, directly or indirectly, that such digital asset will be listed on Binance Exchange in the future. As digital asset prices can be volatile, the value of any investment that you make in Alpha Assets may go down or up and you may lose all or part of the value of the amount that you invest. Please note that in relation to Binance Alpha (i) the risk of loss of all or part of your investment is magnified with Binance Alpha assets as they are subject to increased price volatility (ii) by purchasing Alpha Assets, you are exposed to price slippage and blockchain fees, which can have a negative impact of the price of Alpha Assets (iii) Alpha Assets cannot be withdrawn from the Binance Exchange, and you will only be able to access Alpha Assets from your Alpha Account only. You are solely responsible for your investment decisions. Binance will not in any circumstances be responsible or liable for any losses that you may incur arising directly or indirectly from an investment in Binance Alpha Assets.

PANews reported on April 3 that a "Circle USDC File" compiled by blockchain detective ZachXBT reveals that since 2022, Circle has been suspected of inaction or slow action in compliance handling of multiple incidents involving theft, hacking, or sanctioned entities, with the total amount involved exceeding $420 million. These include the failure to promptly freeze tens of millions of USDC in the $110 million Mango Markets hack and the $190 million Nomad Bridge hack; the freezing of addresses related to Lazarus Group was approximately 4.5 months later than other stablecoin issuers; and in the Ledger supply chain attack, stolen assets containing USDC remained in addresses for over 3 hours without being frozen.

PANews reported on April 25th that, according to a post by Arkham on the X platform, Avi Eisenberg, the notorious attacker who profited approximately $110 million in 2022 by manipulating the Mango Markets price oracle, has recently had on-chain signature transactions reappear at an address associated with him, drawing significant attention from the community. Avi previously gained notoriety for exploiting vulnerabilities in Mango Markets, subsequently threatening attacks on Aave, and being liquidated himself on Curve after attempting to liquidate someone else's position. He was later arrested and imprisoned, becoming one of the most iconic attack cases in the crypto industry. Now that his address is active again, the market is speculating whether Avi has returned to the crypto market; however, as of now, no further official information has been disclosed.

Avraham “Avi” Eisenberg, the trader convicted over the 2022 Mango Markets exploit, denied ever threatening to attack Aave (AAVE). His pushback followed an Arkham post claiming his wallet had become active again.

The on-chain analytics firm shared screenshots of a transaction signed by an address tied to Eisenberg. Arkham framed the activity as his potential return to crypto after a prison sentence on fraud and manipulation charges.

Eisenberg Rejects the Threat Framing on AaveEisenberg insisted that he never targeted Aave with an exploit, describing the 2022 episode as responsible disclosure. He said he privately notified the team about a potential risk before going public.

“I informed the team privately about a potential risk, then disclosed it publicly after they said they were aware and monitoring,” he explained.

The 2022 narrative traces back to Eisenberg’s attempt to liquidate Curve (CRV) founder Michael Egorov’s large CRV position.

That trade ended with Eisenberg getting liquidated instead. He later went to prison after pleading guilty on a separate charge.

AVI EISENBERG IS BACK.

In 2022, Avi Eisenberg exploited Mango Finance for $110M, threatened to attack AAVE, then got liquidated on Curve while trying to liquidate @newmichwill. Then he went to prison.

His address just signed a transaction. Is Avi Eisenberg back? pic.twitter.com/9zGYD0byGl

— Arkham (@arkham) April 25, 2026 Chaos Labs DM Dispute Adds HeatEisenberg also rejected claims from Chaos Labs founder Omer Goldberg, whose firm previously advised Aave on risk parameters. Chaos Labs ended its risk engagement with Aave on April 6, 2026.

Goldberg told Laura Shin’s Unchained podcast earlier in April that Eisenberg had requested access to Chaos Labs’ attack-cost models. The remarks referenced the period after the Mango incident.

“The DM described here never happened,” he articulated.

The dispute revives long-running tensions in DeFi. Probing a protocol’s weaknesses could be seen as a threat or as white-hat work, and the line remains contested.

Eisenberg’s address was never blacklisted, and no fresh exploit activity has surfaced beyond the flagged signature.