Lawyers representing the individual responsible for the $116 million Mango Markets exploitation have successfully obtained a delay in his fraud trial, pushing the start date to April 8, 2023.
Originally scheduled for December 4, Avraham Eisenberg’s fraud trial faced delays due to various factors, as explained by his legal team.
They presented a motion for a continuance to district court Judge Arun Subramanian on November 2, which was granted.
In a court filing on November 3, Judge Subramanian confirmed the trial’s rescheduled commencement date.
Despite opposition from United States prosecutors, who contested the motion for continuance, the judge ruled in favor of the defense.
Subramanian additionally instructed both the U.S. prosecutors and Eisenberg’s legal team to submit an updated schedule for pretrial motions and submissions by November 7.
Eisenberg, who admitted involvement in the Mango Markets exploit, pleaded not guilty to three criminal counts related to commodities fraud, commodity manipulation, and wire fraud in June.
Eisenberg’s lawyers cited the need for more time to review extensive discovery materials provided by U.S. prosecutors as a primary reason for the delay.
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They mentioned that the government had been continuously sharing voluminous discovery materials, requiring ongoing analysis and discussions with their client.
Complicating matters further, Eisenberg’s sudden transfer to the Metropolitan Detention Center (MDC) in Brooklyn on October 26 disrupted their preparations.
Due to the move, Eisenberg was unable to take the annotated discovery materials and other relevant legal documents with him.
The attorneys expressed concerns about the hindrance to their access to Eisenberg caused by his relocation to the MDC.
This prison is notable for being where former FTX CEO Sam Bankman-Fried returned after being convicted on seven fraud-related charges on November 2.
In addition to his upcoming fraud trial, Eisenberg faces charges filed by the Securities and Exchange Commission on January 20, accusing him of manipulating the Mango Markets governance token, MNGO.
The allegations involve Eisenberg taking out substantial loans against inflated collateral, depleting Mango’s treasury of approximately $116 million. His arrest in Puerto Rico on December 27 preceded these charges.
Eisenberg publicly confessed to the exploit on October 15, 2022, asserting that his actions were legally sound.
Initially, he returned $67 million to Mango Markets’ decentralized autonomous organization as part of a bounty deal. However, the Mango Markets team subsequently filed a lawsuit against Eisenberg, seeking $47 million in damages, plus interest.
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