Individual Accused of Possessing Child Pornography in Mango Markets Exploitation Case

Man Faces Child Pornography Charges After Mango Markets Scam


Ruholamin Haqshanas
Last updated:
April 29, 2024 04:04 EDT
|
2 min read


Avraham Eisenberg, the person recently found guilty of committing fraud and manipulating the market to steal $110 million from Mango Markets, is now facing additional charges related to possessing child pornography.
Court documents, dated April 3 but
released on April 26
, state that Eisenberg had images on his devices showing children under the age of 12.
It is important to note that these allegations have not yet been proven in court.
Eisenberg Had Child Pornography Materials
Previous court documents from August revealed that the material was first discovered on Eisenberg’s phones and laptops during a search related to the fraud and market manipulation charges.
The government then obtained a second warrant in February 2023 to investigate further evidence of possession and receipt of child pornography.
Investigative journalist Christopher Brunet was the first to report on the child pornography charges. Brunet claims to have screenshots of disturbing conversations about children involving Eisenberg.
These new charges are a significant development in Eisenberg’s legal troubles, which already included the conviction for fraud and market manipulation.
The seriousness of the case is exacerbated by the severity of the child pornography allegations.
As previously reported, Eisenberg
has been found guilty
in a federal court in Manhattan for orchestrating a scheme that led to the theft of approximately $110 million from the Solana-based DeFi platform.
Prosecutors argued that Eisenberg executed a complex exploit on the platform, resulting in significant financial losses.
Eisenberg, who has been in custody since January 2023, could face a maximum sentence of 20 years in prison.
$110 Million Stolen from Mango Markets
On October 11, 2022,
Mango Markets fell victim to an attack
in which around $110 million was stolen from its treasury.
Shortly after the attack,
Avraham Eisenberg confessed to being the perpetrator
, claiming that the exploit was simply a “highly profitable trading strategy” conducted within legal limits and the protocol’s intended design.
According to prosecutors
, Eisenberg used two accounts to engage in manipulative trading with futures contracts linked to the values of
Mango’s token MNGO and the stablecoin USD Coin
.
These trades allegedly inflated the value of his contracts by 1,300% in just 20 minutes, allowing him to borrow against his holdings and withdraw $110 million in various cryptocurrencies.
Later, Eisenberg agreed to return $67 million in exchange for other token holders refraining from legal action or freezing his assets.
He was arrested on December 26, 2022, in San Juan, Puerto Rico, where he lived, and has remained in custody since then due to prosecutors considering him a flight risk.
On January 9,
the Commodity Futures Trading Commission (CFTC) added to the FBI’s charges
by accusing Eisenberg of market manipulation.
Mango Labs also filed a
lawsuit
describing Eisenberg as a “notorious online personality” known for attacking multiple cryptocurrency platforms and manipulating cryptocurrency markets.
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