The post U.S. Judge Dismisses Fraud Charges in Mango Markets Crypto Case appeared on BitcoinEthereumNews.com.

U.S. Judge Arun Subramaniam declared in favour of Avraham Eisenberg, vacating fraud and manipulation charges in the Mango Markets case. The decision underlines regulatory loopholes, boosting calls for crypto regulations and ethical standards. A key judgement rattled the crypto legal landscape as the U.S. District Judge Arun Subramaniam overruled key fraud and market manipulation verdicts against Avraham Eisenberg, the investor charged with coordinating the well-known $110 million Mango Markets exploit.   Eisenberg had previously suffered multiple legal charges for his role in manipulating in MNGO coin price by above 1,300%, then using the pumped-up value to extract large amounts from the decentralized exchange. Though sentenced in 2024 , his legal team argues that he had just taken advantage of an open-source and flawed DeFi protocol and not committed any fraud. Court Backs with DeFi Code Interpretation Judge Subramaniam agreed, interpreting that Mango Markets code was “permissionless and automatic” and thus could not have been misled in a legal sense. He asserted that the government’s arguments missed sufficient evidence that Eisenberg made a substantial misrepresentation to Mango Market and its users. The verdict has raised question marks across both legal and crypto communities. While Eisenberg’s manipulation significantly affected the market, the court’s stance supports the DeFi principle: that smart contracts implement code as written, and anyone communicating with them implies using the system as designed.  Eisenberg, however, is under detention. Earlier this month, he was convicted to almost four years in prison after pleading responsible to a different allegation of child pornography. This sentencing further complicates public opinions and sentiments of the case.  This pivotal verdict set an example that redesigns how laws analyze interactions with decentralised protocols. As DeFi systems continue to expand and evolve, isolating unethical practices from criminal misconduct will become increasingly tough. The Eisenberg case unveils an increasing…

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Filed under: News - @ May 24, 2025 4:28 pm