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 as reasons for the order.

“The defendant must be detained pending trial because the Government has proven… that no condition or combination of conditions of release will reasonably assure the defendant’s appearance as required,” a document signed by McGiverin said.

The document cites 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 last October as a “highly profitable trading strategy,” and 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 Chief Executive Officer 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