Crypto Trader’s Fraud Conviction Undercuts Exchange Code Defense

A crypto trader’s fraud conviction for exploiting cryptocurrency exchange rules to steal $110 million is a strike against the “code is law” argument championed by some decentralized finance proponents.

But Avraham Eisenberg’s conviction last week also raises questions about the reach of US wire fraud laws, which target using electronic communications to defraud people and have increasingly been used in crypto cases.

“He didn’t lie to anybody,” Polsinelli PC attorney Jonathan Schmalfeld said, noting Eisenberg’s alleged fraud was carried out against an algorithm that runs Mango Markets. “He didn’t even lie to the machine.”

Source: Crypto Trader’s Fraud Conviction Undercuts Exchange Code Defense