In the USA, jurisdictions have been engaged in discussions regarding accusations of fraud and market manipulation against Avi Aizenberg. He is accused of utilizing the Mango Markets DE-Fi platform to commit fraud amounting to $110 million.
The prosecution alleges that in October 2022, Aizenberg conducted numerous significant transactions on the Mango Markets platform, artificially inflating the token’s value in relation to the USD Coin (USDC) before withdrawing assets. By December of the same year, Aizenberg was apprehended in Puerto Rico for his involvement in a price manipulation scheme.
Aizenberg’s defense contends that he merely employed a legitimate trading strategy that enabled him to earn $110 million, denying any criminal activity. According to his lawyers, Aizenberg did not engage in deception but simply leveraged the functionalities offered by the Mango Markets smart contracts, also returning a portion of the funds to the platform.
Having been in custody since January 2023, Aizenberg faces a potential prison sentence of up to 20 years if found guilty. Apart from the criminal charges, civil lawsuits have been filed against him by the US Securities and Exchange Commission and commodity futures commissions, with their proceedings postponed until the conclusion of the criminal case.