Judge Axes Core Charges Against Mango Markets Exploiter—DeFi Justice or Legal Loophole?
A federal judge just gutted the prosecution’s case against the alleged Mango Markets exploiter—dropping key charges that could’ve meant decades behind bars. The DeFi community’s watching closely as regulators fumble their first big crypto market manipulation test.
Legal experts call it a watershed moment. TradFi skeptics smirk—’code is law’ until it isn’t. The ruling exposes the glaring gap between decentralized finance’s wild west and traditional legal frameworks.
One thing’s clear: this isn’t the last time a clever crypto trader outmaneuvers the system. The SEC’s probably drafting new rules as we speak—because nothing inspires regulatory creativity like a fat L in court.
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Though Eisenberg’s crypto-related charges were largely struck down, he remains in prison, serving a four-year sentence related to possession of child sexual abuse material—an unrelated case.
His legal team welcomed the ruling, calling the prosecution “fundamentally flawed.” Meanwhile, Mango Markets, already battered by legal disputes and financial instability, has since shut down operations. The Justice Department has yet to announce if it will pursue the vacated charges in another jurisdiction.
The ruling could have broader implications for how U.S. courts approach cross-border cases involving decentralized platforms, especially as prosecutors attempt to apply traditional legal frameworks to crypto ecosystems with no centralized oversight or geographic boundaries.
