(Bloomberg) — Federal jurors in New York heard sharply contrasting arguments on whether a trader manipulated the Mango Markets cryptocurrency exchange to steal $110 million or executed a perfectly legal strategy that was permissible under the rules of the platform.
Prosecutors wrapped up their trial of Avi Eisenberg, 28, by arguing Wednesday he used fake trades of Mango’s token, known as MNGO, to manipulate futures contracts on Oct. 11, 2022, which boosted the value of swaps by 1,300% in 20 minutes. He then allegedly stole platform assets by “borrowing” against those inflated contracts on the exchange.
“This was old-fashioned manipulation and fraud,” Assistant US Attorney Peter Davis said during closing arguments. “He pumped the price and lied so he could steal people’s money.”
The trial, which began last week, is the first time a US jury will decide whether someone manipulated a crypto market. Prosecutors argued that traditional criminal laws apply, but defense lawyers say Eisenberg followed exchange rules that didn’t offer the same protections as other financial markets.
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