From Cointelegraph
May 24, 2025 3:00 am:

A US federal judge has vacated key fraud and manipulation convictions against Avraham Eisenberg in the case involving a $110 million exploit of Mango Markets. The judge ruled that evidence failed to support the jury’s conclusion that Eisenberg made false representations. This weakens the government’s case significantly.

The Justice Department argued that Eisenberg deceived Mango’s system, but his defense claimed he exploited poorly designed code without making false representations. The judge agreed, stating the system was permissionless and automatic, with no evidence of falsity, supporting Eisenberg’s interpretation of DeFi mechanics.

The judge also rejected prosecutors’ argument for the case to be heard in New York, citing lack of meaningful activity tied to the alleged crime in the state. The US government must decide whether to refile charges, but Eisenberg faces civil suits from the SEC and CFTC. Despite the ruling, he remains in custody.

In a separate case, Eisenberg was sentenced to nearly four years in prison for possessing child pornography. This stemmed from unrelated evidence uncovered during his arrest for commodities fraud and manipulation. Despite being found guilty, his defense argued the exploit was a legal trading strategy, not a cybercrime.

Read more at Cointelegraph: Judge overturns fraud convictions in Mango Markets exploit case