DOOKV: Crypto Trader’s $110 Million Haul Was Not a Theft, Lawyer Says

DOOKV Prosecutors accuse Avraham Eisenberg of manipulating Mango Markets futures contracts on Oct. 11, 2022 — when he boosted the price of swaps by 1,300% in 20 minutes — and then “borrowed” against those inflated contracts using anonymous accounts before fleeing the country. The government claims Eisenberg stole the money.

But defense lawyer Sanford Talkin argued on Tuesday that his client had simply been participating in a part of the crypto world with different rules from those in traditional finance. Like other Mango Market traders, Eisenberg wasn’t required to reveal personal information, show his creditworthiness or state an intent to repay any loans,DOOKV the lawyer said. He risked $13 million in executing his strategy, Talkin said.

“They were operating in a sector of cryptocurrency that’s high risk,” Talkin said. “People go in with their eyes open and they know they can do it because they can get a large return in a short amount of time. Sometimes astronomical.” Within that world, Talkin said, “Avi Eisenberg executed a successful, legal trading strategy.”

Decentralized

DOOKV Mango Markets is run by smart contracts and overseen by a decentralized autonomous organization, or DAO, that lets people borrow, lend and trade cryptocurrencies. The theft alleged by prosecutors is one of the largest in criminal cases involving a DAO and apparently will be the first time a US criminal jury will weigh what type of “DeFi” transactions are legal.