Cryptocurrency genius hacker's dual crimes exposed, sentenced first for child pornography charges.
Avraham 'Avi' Eisenberg, who successfully attacked the decentralized finance platform Mango Markets in 2022 and stole approximately $100 million in cryptocurrency, was sentenced to 52 months (4 years and 4 months) in prison on May 1 at the federal court in the Southern District of New York. Shockingly, this sentence is not related to his cryptocurrency fraud case but rather due to his possession of child sexual abuse materials (CSAM). According to court reports, a large amount of child pornography was found on Eisenberg's electronic devices after law enforcement arrested him, which he downloaded between 2017 and 2022.
The sentencing documents submitted by the prosecutor detail Eisenberg's crimes, noting that he downloaded 1,274 images and videos of child sexual abuse, including content involving infants as young as two months old, as well as images depicting 'violence and abuse against children.'
Judge Arun Subramanian emphasized during sentencing: 'In this particular industry, general deterrence is more important... The only way to prevent such tragedies from spreading is to incarcerate these criminals.'
In addition to imprisonment, Eisenberg will face five years of strict probation upon release, requiring monitoring software to be installed on all electronic devices and participation in a drug outpatient program.
The cryptocurrency fraud case has yet to be sentenced, and the hacker's defense of 'legitimate trading' was rejected by the jury.
In addition to the child pornography charges, Eisenberg was found guilty by a jury in April 2024 of wire fraud, commodity fraud, and commodity manipulation in the Mango Markets case. This incident occurred in October 2022, when Eisenberg used price oracle manipulation techniques to attack the Mango Markets platform, resulting in approximately $100 million in user funds lost, while the platform's native token $MNGO plummeted 52% within 24 hours, forcing the platform to suspend deposit services.
Despite being convicted, Eisenberg and his lawyer maintain that his actions were 'legal public market activities' that merely exploited loopholes in the agreement design and were not illegal.
Source: X Eisenberg and his lawyer still maintain that his actions were 'legal public market activities' that merely exploited loopholes in the agreement design and were not illegal.
They filed a motion for release from custody in September 2024, but it was strongly opposed by the U.S. Attorney's Office, which argued that Eisenberg's conviction was based on a 'careful assessment of substantial evidence.' Notably, Eisenberg fled to Israel after his identity was exposed, which the prosecution views as evidence that he was aware his actions were illegal. The judge stated at the hearing on May 1 that a ruling on the Mango Markets-related charges has not yet been determined but acknowledged that there is a 'non-zero chance' he would approve the defense's motion.
Strict religious background and social difficulties serve as defense arguments, increasing cases of cryptocurrency hackers being imprisoned.
In the sentencing documents submitted to the court, Eisenberg and his lawyer attempted to attribute his criminal behavior to his strict religious upbringing and lifelong 'difficulty conforming to social norms.' They described Eisenberg as 'essentially an upright person' and detailed his challenges adapting to the 'daily horrors' of life in prison. The prosecution, however, requested the court to impose a sentence of 6.5 to 8 years, emphasizing the severity of his criminal actions.
The Eisenberg case reflects the increasing risk of arrest and prosecution faced by hackers and cybersecurity attackers in the cryptocurrency industry. As law enforcement intensifies its crackdown on cryptocurrency crimes, attackers like Eisenberg are facing harsher legal consequences. Currently, Eisenberg is serving time in FCI Otisville, a medium-security prison located about two hours north of Manhattan. The public is still awaiting further court decisions regarding the final judgment in the Mango Markets fraud case.
This content is generated by Crypto Agent summarizing information from various sources, reviewed and edited by (Crypto City). It is still in the training phase and may contain logical biases or information inaccuracies. The content is for reference only and should not be considered investment advice.
'Hacker exploits DeFi platform loophole to steal $100 million! Also possessed child pornography, sentenced to 4 years by court'—this article was first published by 'Crypto City.'