Avraham Eisenberg was accused of exploiting Solana-based Mango Markets in October 2022. He faced charges for these allegations two months later, in December 2022. Nearly 18 months after being charged by the US District Court for the Southern District of New York, Eisenberg has been convicted of fraud and market manipulation. Reports indicate that he attempted to use the "code is law" argument in his defense.

The exploit reportedly resulted in losses of nearly $110 million for the network, as Eisenberg took advantage of poorly designed DeFi protocols. His attorney argued that his actions constituted a legal and profitable trading strategy that exploited a flaw in Mango Markets' design. However, the jurors disagreed, emphasizing that a crime remains a crime regardless of whether it occurs on the blockchain.

The manipulation allegedly caused a significant increase in the price of the MNGO token. Eisenberg reportedly used the perpetual token as collateral to borrow crypto worth around $110 million, with no intention of repaying it. Despite Eisenberg's claims of a profitable strategy, the development team did not anticipate the consequences of their design flaw.

Following Eisenberg's actions, the MNGO token's value initially rose but has since continued to decline. Recently, it experienced a slight increase of 1.59% to $0.02903 but remains on a downward trend, down by 9.45% in the last 7 days. The 24-hour volume has decreased by 25.42%, while the market cap has increased by 0.19%.

Eisenberg reportedly fled to Israel and was found searching the internet for information on criminal and regulatory enforcement of market manipulation and extradition from Israel. He has been convicted of commodities market manipulation, commodities fraud, and wire fraud.

This case is significant as it addresses the "code is law" principle of the industry, highlighting the complexities surrounding smart contracts. Eisenberg's legal battle involved attempts to blackmail the governance of Mango Markets and fraudulent activities, including using fake KYC and storing child pornography.

These developments unfold amidst a turbulent period in the crypto market, with token movements indicating a potential correction while some tokens show bullish signs, causing division within the community.