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Judge overturns fraud convictions in Mango Markets exploit case

A US federal judge has vacated key fraud and manipulation convictions against Avraham Eisenberg, the trader at the center of the case involving a $110 million exploit of the decentralized exchange Mango Markets.

On Friday, US District Judge Arun Subramanian ruled that the evidence presented at trial failed to support the jury’s conclusion that Eisenberg made materially false representations to Mango Markets.

The decision vacates Eisenberg’s convictions for commodities fraud and market manipulation and acquits him of a third charge, significantly weakening the government’s case.

Eisenberg, a self-proclaimed “applied game theorist,” was convicted in 2024 for artificially inflating the price of Mango’s MNGO token by over 1,300% in a matter of minutes and using the resulting gains as collateral to withdraw $110 million in crypto assets from the platform.

Related: US DOJ seizes $24M in crypto from accused Qakbot malware developer

Judge sides with Eisenberg

The Justice Department argued that he deceived Mango’s smart contract-based lending system, but Eisenberg’s defense maintained that he merely exploited poorly designed, permissionless code — without making any false representations.

Judge Subramanian agreed, writing that “Mango Markets was permissionless and automatic,” meaning the system couldn’t be deceived in a legal sense. “There was insufficient evidence of falsity,” the judge added, siding with Eisenberg’s interpretation of DeFi mechanics.

Judge overturns fraud convictions in Mango Markets exploit case
US judge siding with Eisenberg on nature of the exploit. Source: Bwbx.io

The judge also rejected prosecutors’ argument that the case should be heard in New York. Eisenberg was in Puerto Rico at the time of the trades, and the court found that no meaningful activity tied to the alleged crime occurred in New York.

The DOJ had cited a Poughkeepsie-based Mango user and a third-party vendor in Manhattan, but the judge ruled these were not enough to establish proper venue.

The US government must now decide whether to refile the vacated charges, though the Trump administration has recently signaled a reduced focus on crypto enforcement. Eisenberg still faces civil suits from both the SEC and CFTC.

While this ruling clears Eisenberg in the Mango Markets case, he remains behind bars.

Related: Mango Markets exploiter sentenced to over 4 years on child abuse material charges

Eisenberg charged with child pornography

In a separate case, Eisenberg was sentenced to nearly four years in prison on May 1 after pleading guilty to possessing child pornography — a charge stemming from unrelated evidence uncovered during his arrest.

In December 2022, US federal law enforcement authorities arrested Eisenberg in Puerto Rico. FBI officials charged the hacker with one count of commodities fraud and one count of commodities manipulation.

jury found Eisenberg guilty of wire fraud, commodities fraud, and commodities manipulation in April 2024. The defense argued that the exploit was not a cybercrime and represented a “successful and legal trading strategy.”

Magazine: Crypto scam hub expose stunt goes viral, Kakao detects 70K scam apps: Asia Express

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Diane Abbott suspended from Labour Party

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Diane Abbott suspended from Labour Party

Diane Abbott has been suspended from the Labour Party pending an investigation.

A party spokesperson confirmed the decision to Sky News but did not give a reason why.

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It comes after the veteran MP defended previous comments about racism which sparked an antisemitism row and led to a year-long suspension.

She apologised at the time and was readmitted back into the party before the 2024 general election.

A Labour Party spokesperson said: “Diane Abbott has been administratively suspended from the Labour Party, pending an investigation. We cannot comment further while this investigation is ongoing.”

Sky News understands that the suspension is not related to the four rebels who lost the whip on Wednesday for “repeated breaches” of party discipline, including voting against the government’s welfare cuts.

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The action has been taken because of an interview in which she doubled down on her claim Jewish people experience racism differently to black people, which previously sparked a huge controversy.

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Diane Abbott

In a letter to The Observer in 2023, Ms Abbott argued that people of colour experienced racism “all their lives” and said that was different to the “prejudice” experienced by Jewish people, Irish people and Travellers.

Shortly after it was published, she issued a statement in which she said she wished to “wholly and unreservedly withdraw my remarks and disassociate myself from them”.

However in a new interview with BBC Radio 4’s Reflections programme this week, she said she did not look back on the incident with regret.

Ms Abbott said: “Clearly, there must be a difference between racism which is about colour and other types of racism because you can see a Traveller or a Jewish person walking down the street, you don’t know.

“But if you see a black person walking down the street, you see straight away that they’re black. They are different types of racism.”

She added: “I just think that it’s silly to try and claim that racism which is about skin colour is the same as other types of racism.

“I don’t know why people would say that.”

Commenting on the suspension, Ms Abbott told Sky News: “It’s obvious this Labour leadership wants me out. My comments in the interview with James Naughtie were factually correct, as any fair-minded person would accept.”

The clip of the interview was re-posted by Brian Leishman, one of the MPs suspended on Wednesday, who said: “Diane Abbott has fought against racism her entire life.”

Bell Riberio-Addy, who lost her role as trade envoy in yesterday’s purge, also came to Ms Abbott’s defence, saying: “Before condemning her based on headlines, I would listen to her clip and note she discussed the different forms that racism takes and condemned all forms of racism.”

Former shadow chancellor John McDonnell made similar comments, saying that in the interview his colleague “forthrightly condemns antisemitism & discusses the different forms of racism”.

But Labour MP David Taylor told Sky News he has “long thought Diane Abbott shouldn’t be a member of our party due to her appalling positions on everything from Bosnia to Syria”.

He added: “As the Jewish Labour Movement have said, antisemitism targets Jews regardless of how they look, and many in the community are visibly Jewish and suffer racism for it.”

In the interview, Ms Abbott said she “of course” condemns antisemitic behaviour in the same way she would condemn racist behaviour because of the colour of someone’s skin, adding: “I do get a bit weary of people trying to pin the antisemitic label on me because I spent a lifetime facing racism of all kinds.”

Ms Abbott made history when she was elected as Britain’s first black female MP for Labour in 1987.

She is the longest-serving female MP in the Commons, giving her the title “Mother of the House”.

As an MP on the left of the party she has often clashed with the leadership throughout her career – bar her time serving in Jeremy Corbyn’s shadow cabinet.

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Five reasons to be confused by Starmer’s MP suspensions

Many MPs rallied in support of Ms Abbott last year when it was not clear if she would be reinstated in time for the general election, or allowed to stand.

She went on to retain her seat of Hackney North and Stoke Newington with a majority of over 15,000.

Deputy Prime Minister Angela Rayner hinted action could be taken against Ms Abbott when she told The Guardian earlier on Thursday that she was “disappointed” in her colleague’s remarks.

“There’s no place for antisemitism in the Labour Party, and obviously the Labour Party has processes for that,” she said.

A source close to the decision to suspend her told Sky News there is a “very slim chance” she will be allowed back in, given she did antisemitism training and apologised last time.

It raises questions about whether Ms Abbott could join the new party being formed by Mr Corbyn and former Labour MP Zarah Sultana.

For the time being, Ms Abbott will sit in the Commons as an independent MP.

Adnan Hussain, who was elected as the independent MP for Blackburn last year, said on X: “We’d be honoured to have a giant like Diane join us, she [should] come to the side that would really appreciate her for the legend she is.”

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SEC Chair Atkins considers innovation exemption to boost tokenization

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SEC Chair Atkins considers innovation exemption to boost tokenization

SEC Chair Atkins considers innovation exemption to boost tokenization

Crypto industry hails GENIUS Act as a win, while Senator Elizabeth Warren criticizes it for consumer protection gaps.

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Former rugby player sentenced for $900K crypto mining Ponzi

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Former rugby player sentenced for 0K crypto mining Ponzi

Former rugby player sentenced for 0K crypto mining Ponzi

Former rugby player Shane Donovan Moore was sentenced to 2.5 years in US federal prison for running a $900,000 crypto mining Ponzi scheme.

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