DeFi Trader Eisenberg's Fraud Trial Begins Over $110M Mango Markets Exploit

The trial marks the first criminal case against a crypto trader for alleged commodities manipulation in decentralized finance.

The U.S. government's commodities manipulation and fraud trial against DeFi trader Avi Eisenberg began, focusing on his $110 million exploit of Mango Markets.
Prosecutors argue Eisenberg committed commodities fraud and market manipulation by inflating the value of MNGO tokens and borrowing against their inflated value.
Eisenberg's defense claims his actions were a legitimate use of the DeFi protocol, highlighting the unclear regulatory status of crypto markets.
The trial is expected to last two weeks and is the first criminal case against a crypto trader for allegedly breaking commodities rules in DeFi.
Eisenberg previously agreed to return $67 million to Mango Markets but now faces potential jail time for wire fraud, commodities fraud, and manipulation charges.