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FBI Found Child Pornography on Mango Markets Hacker Avi Eisenberg’s Phone

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FBI Found Child Pornography on Mango Markets Hacker Avi Eisenberg’s Phone

  beincrypto.com 23 m

FBI Found Child Pornography on Mango Markets Hacker Avi Eisenberg’s Phone

In a dramatic turn of events, Avraham Eisenberg, infamously known as the Mango Markets’ hacker, is now under investigation for alleged possession and receipt of child pornography.

Eisenberg’s case underscores the nature of online scrutiny and ensuring that technology serves justice rather than shielding potential perpetrators.

Mango Markets Hacker and a Unique Court Case

Eisenberg gained notoriety after employing a “highly profitable trading strategy,” causing a loss of $110 million in cryptocurrencies from Mango Markets, a leading decentralized finance trading platform.

After being arrested in Puerto Rico in December 2022, Eisenberg confessed to exploiting Mango Markets, marking him as possibly the first US resident to face legal consequences for manipulating a decentralized finance platform.

Eisenberg stated,

“I was involved with a team that operated a highly profitable trading strategy last week. I believe all of our actions were legal open market actions, using the protocol as designed, even if the development team did not fully anticipate all the consequences of setting parameters the way they are.”

Mango Markets Hacker Avi Eisenberg on Whether His ‘Trade’ Was Ethical or Not. Source: Unchained Ep. 413

Legal documents highlight that Eisenberg faces commodities fraud and commodities manipulation charges. These offenses, stemming from the intentional alteration of Mango Markets’ native token MNGO’s price, resulted in potential punishments ranging from hefty fines to substantial imprisonment.

Moreover, Eisenberg’s intentional manipulation inflated the price of MNGO perpetual contracts by 1,300% within an hour. This allowed him to amass a whopping $110 million. Following his actions, Mango Markets fell into insolvency.

Darker Secrets Uncovered

However, as investigations deepened, Eisenberg’s digital world revealed darker secrets. The FBI’s Computer Analysis and Response Team (CART) observed child pornography content on one of his cell phones during a data conversion.

This led to an expansion of the initial warrant. Authorities then authorized a thorough search for evidence relating to child pornography possession and receipt.

“While converting data from one of Eisenberg’s cellphones into a readable format, CART employees observed that the device contained child pornography. On or about February 6, 2023, the Government applied for and obtained a second warrant, expanding the scope of the original warrant to search for evidence of offense related to the possession and receipt of child pornography,” read court documents.

The presence of child pornography on Eisenberg’s devices is morally reprehensible and also compounds his legal challenges. In the US, penalties for child pornography offenses are particularly stringent.

Possession, even without distribution, often leads to prison sentences. At the federal level, a single email containing child pornographic content can result in a mandatory five-year imprisonment.

Lawyers at ZMO Law PLLC state,

“Almost any case of possession, however, can also be charged as “receipt,” which carries the same penalty as distribution under 18 U.S.C. Sec. 2252(b)(1): five to forty years. If a defendant pleads guilty or is convicted of receipt or distribution of child pornography, the judge is required to sentence him to at least five years in prison.”

Eisenberg’s legal challenges are manifold. On one hand, he faces charges related to commodities fraud and manipulation. These charges are anchored in his calculated exploitation of Mango Markets. The discovery of child pornography on multiple devices has added a more grievous dimension to his legal battles.

As investigations unfold, Eisenberg stands as a potent symbol of the digital world’s multiple challenges.

Eisenberg’s case serves as a reminder of the potential perils of the digital age. In an era where online actions can have real-world consequences, the importance of ethical online behavior cannot be stressed enough.

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