Reported by Crystal Kim, author of Axios Crypto

A jury found Avraham “Avi” Eisenberg guilty on all three counts of fraud and manipulation in a $110 million crypto trade scheme using the Mango Markets platform.

Why it matters: The case was the first known test for a jury to decide whether existing U.S. laws governing fraud and market manipulation apply to the world of decentralized finance (DeFi).

Between the lines: The 28-year-old Eisenberg will be held to account for his actions on Oct. 11, 2022, when a series of trades he made intentionally boosted the price of Mango Markets’ native token, MNGO, as well as the price of futures contracts.

• He used the inflated futures holdings as collateral to borrow other cryptocurrencies on the platform, then quickly withdrew those assets and walked away from his collateral.
• Eisenberg never disputed the facts of the strategy but contended that what he did was legal and permitted by the DeFi protocol, a principle in the industry known as “code is law.”

Read full report: https://www.axios.com/2024/04/18/avi-eisenberg-convicted-crypto-defi-mango-markets