Crypto Scam Criminal Trial Tests ‘Code Is Law’ Claim by Trader – Bloomberg

A jailed trader accused of stealing $110 million on the Mango Markets exchange faces a criminal trial this week that will test the reach of a US crackdown on cryptocurrencies.

Prosecutors charged Avraham Eisenberg with manipulating Mango Markets futures contracts on Oct. 11, 2022, to boost the price of swaps by 1,300% in 20 minutes. He then “borrowed” from the exchange against the inflated value of those contracts, a move the government claims was a theft.

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Eisenberg, a self-described “applied game theorist,” claims his actions weren’t theft at all. Rather, he says, he legally exploited a weakness in the decentralized finance application. The trial will apparently be the first time a US criminal jury will weigh what type of “DeFi” transactions are legal.

Source: Crypto Scam Criminal Trial Tests ‘Code Is Law’ Claim by Trader – Bloomberg