The trial of Avraham Eisenberg, the individual accused of exploiting Mango Markets and siphoning off $116 million, has been postponed until April 8, 2023, following a successful motion by his legal representatives. Originally scheduled for December 4, the trial was delayed due to various factors affecting Eisenberg’s trial preparations.
The motion for a continuance was presented to District Court Judge Arun Subramanian on November 2 and was granted, as confirmed in a court filing on November 3.
United States prosecutors opposed the motion for continuance, but their efforts were unsuccessful.
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In addition to granting the continuance, Judge Subramanian instructed both U.S. prosecutors and Eisenberg’s legal team to submit a revised schedule for pretrial motions and submissions by November 7.
Eisenberg, who had previously confessed to his involvement in the Mango Markets exploit, pleaded not guilty to three criminal counts related to commodities fraud, commodity manipulation, and wire fraud in June.
In their motion, Eisenberg’s attorneys cited the need for additional time to review the extensive discovery materials provided by U.S. prosecutors.
They explained that the government had been continually delivering substantial evidence, which they were still in the process of analyzing and discussing with their client.
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Furthermore, the legal team faced an unexpected setback when Eisenberg was transferred to the Metropolitan Detention Center (MDC) in Brooklyn on October 26.
This move prevented him from accessing the discovery materials and other legal documents pertinent to his trial.
The attorneys argued that the relocation would significantly impede their ability to consult with Eisenberg.
It’s noteworthy that the MDC was also the prison where former FTX CEO Sam Bankman-Fried returned after being convicted on all seven fraud-related charges on November 2.
Additionally, the Securities and Exchange Commission had charged Eisenberg on January 20, alleging that he manipulated Mango Markets’ governance token, MNGO, by securing substantial loans against inflated collateral, leading to the depletion of Mango’s treasury.
Eisenberg was arrested in Puerto Rico on December 27, three weeks prior to the SEC’s charges.
Eisenberg publicly admitted to the exploit on October 15, 2022, contending that his actions were legally justified.
Initially, he returned $67 million to Mango Markets’ decentralized autonomous organization as part of a bounty arrangement.
Nevertheless, the Mango Markets team subsequently filed a lawsuit against Eisenberg, seeking $47 million in damages plus interest.
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