Crypto Trader's $110 Million Manipulation Case Goes to Jury

In a landmark trial in New York, jurors are deliberating whether trader Avi Eisenberg manipulated the Mango Markets cryptocurrency exchange to allegedly steal $110 million or if he executed a legal trading strategy permissible under the platform's rules. Prosecutors argue that Eisenberg engaged in fraudulent activities by inflating the value of swaps through fake trades of Mango's token, leading to a 1,300% increase in 20 minutes on October 11, 2022, and then allegedly stealing assets by borrowing against these inflated contracts. Defence lawyers contend that Eisenberg followed the rules of the decentralised finance platform, emphasising that he put his own money at risk and complied with the smart contracts governing the exchange. The trial marks the first time a US jury is deciding a case of alleged crypto market manipulation, with prosecutors asserting that traditional criminal laws apply, while the defence maintains that the platform lacked the same protections as other financial markets.