US Has No Authority to Prosecute DeFi Trades, Says Lawyer for Mango Markets Hacker
Avraham Eisenberg is accused of defrauding the Solana DeFi trading platform Mango Markets of over $100 million in 2022. The fact that Eisenberg drained the platform is uncontested. The trial is focusing on whether his actions are subject to U.S. criminal law. Eisenberg's attorney argues that the charges of commodities fraud and manipulation may not apply if prosecutors fail to prove that the assets involved were commodities. The U.S. government portrays Eisenberg's actions as a high-tech version of old-fashioned fraud. Eisenberg's exploit involved selling and buying MNGO tokens on Mango Markets, causing insolvency. He claimed the exploit was legal. The SEC, Mango Labs, and the CFTC have all taken legal action against Eisenberg.
