A U.S. judge has overturned the fraud and market manipulation convictions of Avraham Eisenberg, who was accused of draining $110 million from the decentralized finance protocol Mango Markets. Judge Arun Subramanian ruled that the prosecutors did not prove that Eisenberg made false representations to the platform. Eisenberg had manipulated the price of Mango’s native token, MNGO, by over 1,000% in a short time, which allowed him to withdraw the large sum backed by inflated collateral. His defense argued that he exploited a vulnerability within the platform's permissionless structure, a stance the judge supported, indicating that there was insufficient evidence of falsity from the prosecutors. Although his case for fraud has collapsed, Eisenberg is currently serving a four-year sentence for possession of child sexual abuse material. His attorney expressed satisfaction with the ruling, stating that the case was fundamentally flawed from the outset.

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