Puerto Rico Man Convicted in Historic $110 Million Cryptocurrency Manipulation Scheme

A 28-year-old man from San Juan, Puerto Rico, named Avraham Eisenberg, has been convicted by a federal jury in Manhattan for the first-ever open-market cryptocurrency manipulation investigation by the Department of Justice (DOJ), according to the Manhattan U.S. Attorney’s Office.

Fraudulent Activities at Mango Markets Exchange

Eisenberg stood trial on Thursday, May 4, 2023, for allegedly defrauding the Mango Markets exchange and its customers of roughly $110 million. Prosecutors claimed that he manipulated the prices of cryptocurrency futures contracts and the MNGO token through artificially inflating transactions.

According to the Manhattan U.S. Attorney’s Office, following his indictment in February 2023, Eisenberg obtained cryptocurrency by inflating asset values through manipulative transactions and then borrowed massive amounts based on those inflated values.

Guilty Verdict

The jury reached a unanimous decision, convicting Eisenberg on three counts of wire fraud, commodities fraud, and commodities manipulation. U.S. Attorney for the Southern District of New York, Damian Williams, addressed the media following the trial.

“Moments ago, Avraham Eisenberg was found guilty by a unanimous jury on three counts of wire fraud, commodities fraud, and commodities manipulation in the first-ever cryptocurrency market manipulation case.” — Damian Williams, U.S. Attorney for Southern District of New York

stolen funds

During the investigation, it was discovered that Eisenberg had no intention of repaying the borrowed cryptocurrency. Instead, he intended to permanently steal those funds.

Protecting Financial Markets

Damian Williams stated that this groundbreaking prosecution signified their office’s ability to apply innovative approaches and cutting-edge law enforcement tools to safeguard financial markets, including those dealing with cryptocurrencies, from deception and deceit.

Sentencing

Eisenberg will be sentenced on July 29, 2023, in Manhattan federal court.

This story will be updated with further information as it becomes available.