Avraham Eisenberg Wins Dismissal of Fraud Charges in Mango Markets Case

In a significant development for the Mango Markets litigation, a federal judge has struck down the financial fraud and market manipulation charges against Avraham Eisenberg. The ruling came after the court determined that prosecutors lacked sufficient evidence to support their allegations, marking a dramatic turn in a case that has drawn considerable attention from both regulators and the crypto community.

Judge Dismisses Core Charges on Evidentiary Grounds

On May 23, US District Judge Arun Subramanian officially vacated the fraud and market manipulation charges, concluding that the prosecution had failed to demonstrate guilt beyond a reasonable doubt. The judge’s ruling emphasized a critical factor: the decentralized nature of Mango Markets itself. According to the court’s reasoning, because the platform operated on permissionless and automatic principles, there existed insufficient evidence that Avraham Eisenberg had made false representations—a key requirement for fraud charges.

The charges stemmed from allegations that Eisenberg manipulated MNGO token prices between October 11-15, 2022. Prosecutors claimed he executed what’s known as oracle manipulation, artificially inflating both the MNGO token and MNGO-USDC swap prices to generate profits. Eisenberg had consistently maintained that his activity represented a legitimate and highly profitable trading strategy rather than manipulation.

Understanding the Oracle Manipulation Allegation

The original case traced back to January 2023, when the US Commodity Futures Trading Commission (CFTC) formally charged Avraham Eisenberg with commodities fraud. The CFTC’s indictment detailed how the defendant allegedly exploited pricing mechanisms to artificially drive up swaps offered on the Solana-based platform. This strategy proved extraordinarily lucrative—so much so that Eisenberg was eventually forced to return over $67 million to Mango Markets to settle claims.

The trial itself didn’t commence until 2024, having been delayed due to its technical complexity and the need for specialized legal analysis around DeFi protocols and automated market mechanics.

The Separate CSAM Conviction

Beyond the dismissed fraud case, Avraham Eisenberg faces consequences in an entirely separate matter involving child sexual abuse material (CSAM). He received a 4-year prison sentence after pleading guilty to possessing more than 1,200 images and videos of child pornography. This conviction stands independently of the Mango Markets charges and remains unaffected by the recent dismissal.

Policy Shifts and the Road Ahead

While Avraham Eisenberg has been exonerated on the fraud charges, multiple legal challenges remain pending. He continues to face civil lawsuits from both the SEC and CFTC, though these proceedings may be influenced by the broader policy environment. The Trump administration’s notably lenient approach to cryptocurrency regulation has already produced measurable results—the SEC has recently withdrawn enforcement actions against major platforms including Ripple, Coinbase, Robinhood, and Uniswap.

This shift in enforcement priorities raises questions about whether prosecutors might refile charges against Eisenberg or pursue remaining civil cases with the same vigor as before. The dismissal reflects both the evidentiary weaknesses prosecutors encountered and potentially a broader recalibration of how federal agencies approach crypto-related misconduct allegations.

The Mango Markets saga—and Avraham Eisenberg’s contested role in it—continues to evolve as regulatory frameworks adapt to the decentralized finance landscape.