Government Recommends Up to 8 Years as Restitution and Reputation Damage Loom
U.S. federal prosecutors have formally requested a sentence of between 78 and 97 months — or six and a half to just over eight years — for Avraham “Avi” Eisenberg, the man convicted of fraud and market manipulation tied to the $110 million exploit of Mango Markets in 2022.
The sentencing request, filed on April 22 in a New York district court, comes ahead of Eisenberg’s May 1 sentencing hearing before U.S. District Judge Arun Subramanian.
Prosecutors argue the sentence reflects the severity of Eisenberg’s actions, including his orchestration of the exploit, his retention of stolen funds, and separate charges involving possession of child pornography.
“Fraud that takes over $100 million from investors and effectively shuts down a business is a shocking violation of criminal law,” the filing reads.
“A sentence commensurate with the crime is necessary to deter future misconduct and protect the public.”
Mango Markets Calls for $47 Million in Restitution
In a separate victim impact statement also filed on April 22, attorneys for Mango Markets urged the court to order Eisenberg to pay $47 million in restitution.
Though Eisenberg returned approximately $67 million after the exploit — which was executed via a controversial governance vote — Mango Markets asserts that the remaining $40+ million must be returned to make the DAO and its users whole.
“Although Eisenberg’s attack cannot be undone, return of the funds he misappropriated is critical to righting his wrong,” Mango Markets said in the statement.
“No amount of money will fix the damage to Mango Markets’ reputation, but restitution can help.”
The decentralized exchange, launched in August 2021, officially shut down in February 2025, citing the long-term impact of the exploit.
Eisenberg’s Defense: “A Legal Trading Strategy”
During his April 2024 trial, Eisenberg’s legal team maintained that the exploit was not criminal, but rather a “legal, highly profitable trading strategy.” Nevertheless, the jury convicted him on three felony counts: wire fraud, commodities fraud, and commodities manipulation.
Eisenberg was arrested in December 2022, and his sentencing has since been postponed multiple times due to what his lawyers described as “complex sentencing considerations.”
Initial sentencing dates were scheduled for December 2024, then moved to February 2025, and again to April 10 before landing on the current May 1 date.
Final Thoughts: A Landmark Case for DeFi Enforcement
Eisenberg’s conviction and impending sentencing mark a landmark moment in crypto enforcement, particularly within the DeFi ecosystem. The case highlights the evolving legal boundaries around governance-based exploits and underscores the government’s growing efforts to hold actors accountable, even in code-is-law environments.
If the court agrees with prosecutors and Mango Markets, Eisenberg may not only face years in federal prison, but also be forced to return tens of millions in stolen funds — setting a precedent for how DeFi “legal exploits” are treated under traditional criminal law.
