The District Court for the District of Puerto Rico decided after holding a detention hearing.
The court cited several reasons for the detention of Eisenberg, including the likelihood that he would fail to appear for required court appearances, the possibility of a lengthy prison sentence if convicted, and ties to individuals or locations outside of the United States. Eisenberg was also found to have an unverified background.
Eisenberg was arrested on Dec. 28 on charges of market manipulation and fraud. He had previously claimed that the Mango Market exploit was a legal open market action and a "highly profitable trading strategy."
Defendant Remains in Custody Until Trial or Bail Review
A detention order issued by a judge during a bail hearing requires a defendant to remain in custody until their case is concluded or released through a bail review. Eisenberg is currently being held in custody as a result of this order.
Mango Markets Exploiter Avraham Eisenberg Faces Fraud and Market Manipulation Charges
On Dec. 28, Avraham Eisenberg, the Mango Markets exploiter, was arrested in Puerto Rico and charged with market manipulation and fraud. These charges come after Eisenberg claimed on social media on Oct. 15 that the Mango Markets exploit was a legal open market action and a "highly profitable trading strategy."
A United States Magistrate Judge detained Eisenberg before the completion of his trial. The District Court for the District of Puerto Rico determined that Eisenberg's detention was necessary due to the likelihood that he would fail to appear for required court appearances, the potential for a lengthy prison sentence if convicted, and ties to individuals or locations outside of the United States. Eisenberg was also found to have an unverified background.
The Impact of the Mango Markets Exploit
It is unclear at this time what impact the Mango Markets exploit had on the crypto exchange or on individuals who may have been affected by Eisenberg's actions. The case against Eisenberg is ongoing, and more information may be revealed as the trial progresses.
