Financial scandals: accusations and verdicts in the cryptocurrency industry

Trader Accused of Stealing 110 Million USD on Mango Markets Exchange to Face Trial

Convicted trader Avraham Eisenberg, accused of stealing 110 million dollars on Mango Markets exchange, awaits trial over allegations of manipulating futures contracts. The incident took place on October 11, 2022, when the price of swaps surged by 1300% in just 20 minutes.

FTX: Founder Sentenced to 25 Years for Fraud

One of the founders of the cryptocurrency exchange FTX, Sam Bankman-Fried, has been sentenced to 25 years in prison by a federal court in New York for orchestrating a massive financial fraud. This case sheds light on the increasingly strict approach of the USA towards financial crimes in the cryptocurrency sector.

Accusations Against Terraform Labs Pte. and Co-founder Do Kwon

In another cryptocurrency-related event, Terraform Labs Pte. and its co-founder Do Kwon were found guilty of fraud in a civil lawsuit. The company’s collapse in 2022 resulted in losses of 40 billion dollars for investors, dealing a significant blow to trust in cryptocurrency markets.

Avraham Eisenberg Case: First US Review of Crypto Actions

Describing himself as an “applied game theorist,” Eisenberg argues that his actions were not theft but a legal exploitation of a loophole in decentralized finance (DeFi) applications. This will make the trial the first case where an American jury will consider which “DeFi” transactions are legally permissible.

Legitimacy of Actions in the Cryptocurrency World

The world of cryptocurrencies operates on the principle of “code is law,” meaning that actions within the virtual ecosystem depend on the conditions of the cryptocurrency platform. However, prosecutors stress that traders cannot act with impunity when it comes to market manipulation or fraud, even if not explicitly prohibited by regulations.

In conclusion, criminal and civil cases involving cryptocurrencies are becoming more prominent due to the increasing popularity and value of these assets. Tracking the progress of cases like that of Avraham Eisenberg may shed light on future regulatory directions and justice concerning actions in the cryptocurrency world.