Crypto influencer convicted in $110m scam

Crypto crook Avi Eisenberg is off to jail after being convicted on various charges of fraud and market manipulation over shenanigans run on the decentralized exchange Mango Markets.

Eisenberg is scheduled to be sentenced on July 29 and is facing "a maximum penalty of 10 years in prison on the commodities fraud count and the commodities manipulation count, and a maximum penalty of 20 years in prison on the wire fraud count," the DOJ said. … The scheme impacted both investors trading and the exchange itself, which had to suspend operations after Eisenberg's attack made the exchange insolvent.

The crypto hype men have moved on to AI, but the real grifters are heading into the "finding out" stage. The U.S. Justice Department writes that this is the first conviction of its type.

"Avraham Eisenberg executed a manipulative trading scheme on a cryptocurrency exchange, defrauding the exchange and its investors out of $110 million," said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department's Criminal Division. "Manipulative trading puts our financial markets and investors at risk. This prosecution—the first involving the manipulation of cryptocurrency through open-market trades—demonstrates the Criminal Division's commitment to protecting U.S. financial markets and holding wrongdoers accountable, no matter what mechanism they use to commit manipulation and fraud." 

"Moments ago, Avraham Eisenberg was found guilty by a unanimous jury in the first-ever cryptocurrency open-market manipulation case," said U.S. Attorney Damian Williams for the Southern District of New York. "This ground-breaking prosecution epitomizes this office's ability to employ innovative methods and cutting-edge law enforcement tools to continue to protect all financial markets. The career prosecutors of this office continue their expertise in prosecuting financial fraud, one of our core priorities, and would-be financial criminals should think twice before daring to engage in illicit conduct on our watch."