Delay to Due Process
Avraham Eisenberg, the alleged exploiter of Mango Markets involved in a substantial $116 million theft, is now set to face the court on April 8, 2024, instead of the previously scheduled date of Dec. 4, 2023. The delay comes after Eisenberg’s legal team successfully argued that more time was necessary to sift through the extensive discovery materials furnished by U.S. prosecutors.
Legal Hurdles and Continuance Granted
On November 2, a motion for continuance was filed to District Court Judge Arun Subramanian by Eisenberg’s lawyers, citing various circumstances impacting their client’s trial preparations. This motion was discussed and granted on November 3, pushing the trial date to April 2024. U.S. prosecutors who opposed the delay were ordered alongside Eisenberg’s legal team to submit a revised schedule for pretrial motions and submissions by November 7.
Confession and Plea
Despite confessing his involvement in the exploit of Mango Markets, Eisenberg plead not guilty to three criminal counts – commodities fraud, commodity manipulation, and wire fraud back in June. His legal team emphasized the necessity of more time to analyze the “voluminous discovery” provided by the prosecution, which they are still reviewing and discussing with Eisenberg.
Preparation time was further lost when Eisenberg was “unexpectedly” transferred to the Metropolitan Detention Center (MDC) in Brooklyn on Oct. 26. This move severely restricted the defense counsel’s access to Eisenberg and hindered the transfer of essential legal documents and discovery materials annotated by the defendant.
A Glimpse into the Allegations
The Securities and Exchange Commission also entangled Eisenberg in legal troubles on Jan. 20, accusing him of manipulating Mango Markets governance token, MNGO, through “massive loans” against inflated collateral, thereby draining approximately $116 million from Mango’s treasury. These charges followed Eisenberg’s arrest in Puerto Rico on Dec. 27 and his public confession to the exploit on Oct. 15, 2022, where he argued that his actions were legal and returned $67 million to Mango Markets as part of a bounty deal. Nonetheless, Mango Markets has pursued a lawsuit against Eisenberg for an additional $47 million in damages plus interest.