Mango Markets Exploiter Must Stay Detained Pending Trial, Court Rules

Avraham Eisenberg, the perpetrator of a $110 million exploit on decentralized crypto exchange Mango Markets, must remain in jail pending trial, a Puerto Rico court has ruled, according to documents posted Wednesday.

Bruce McGiverin, a judge at the Puerto Rico District Court, cited family ties outside the U.S. and a potential “lengthy period of incarceration” if Eisenberg is convicted for commodities fraud and manipulation. He said the government has no proof that Eisenberg would appear in court again if he is released.

The judge also cited up to $40 million of appropriated cryptocurrency that remains unaccounted for, together with Eisenberg’s dual citizenship as reasons for detention, suggesting that he might again try to flee the U.S.

Eisenberg, who was arrested last week, described the exploit in October as a “highly profitable trading strategy.” He may now become the first U.S. resident to face charges for manipulating a decentralized-finance (DeFi) trading platform.

His treatment contrasts with that of former FTX CEO Sam Bankman-Fried, who was just before Christmas released on $250 million bail after being charged with crimes including money laundering and conspiracy to commit wire fraud.

Read more: Mango Markets Exploiter Eisenberg Arrested in Puerto Rico