Avraham Eisenberg Seeks Leniency in Crypto Fraud Case Sentencing – BlockTribune
Avraham Eisenberg Seeks Leniency in Crypto Fraud Case Sentencing
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On Thursday, March 27, 2025, Avraham Eisenberg filed a sentencing memorandum in the US District Court for the Southern District of New York, addressing his convictions in two separate criminal cases. Eisenberg submitted the document ahead of his sentencing for charges related to cryptocurrency fraud and possession of child pornography. The memorandum outlines his personal background, arguments for a reduced sentence, and objections to the Presentence Investigation Report (PSR) prepared by the U.S. Probation Office.
Eisenberg was convicted following a jury trial in case 23 Cr. 10 of commodities fraud, commodities manipulation, and wire fraud, collectively termed the “Crypto Charges.” These charges stem from his trading activities on the Mango Markets cryptocurrency platform. Additionally, he pleaded guilty in case 24 Cr. 251 to possessing child pornography under 18 U.S.C. § 2252A, referred to as the “CP Charge.” The memorandum seeks a sentence significantly below the range recommended by the U.S. Sentencing Guidelines, arguing that the guidelines overstate his culpability.
Regarding the Crypto Charges, the memorandum highlights Eisenberg’s research into similar trades on Mango Markets and other platforms, asserting he believed his actions were permissible under the platform’s smart contract. It notes he returned approximately $68 million in cryptocurrency shortly after the trades, intending to ensure no users suffered losses. For the CP Charge, Eisenberg acknowledges full responsibility and expresses a commitment to therapy to prevent future offenses, citing reflection during his incarceration at the Metropolitan Detention Center (MDC) in Brooklyn.
The document critiques the sentencing guidelines applied to both cases. For the Crypto Charges, it argues the fraud guidelines exaggerate the offense’s severity and compares Eisenberg’s case to other cryptocurrency and market manipulation cases where courts imposed below-guidelines sentences. For the CP Charge, it challenges the guidelines’ enhancements, such as for computer use, as outdated. It also discusses Eisenberg’s harsh confinement conditions at MDC, including lockdowns and violence, as a factor warranting leniency.
Eisenberg raises multiple objections to the PSR, contesting factual inaccuracies and guideline calculations. He disputes the reported $104 million loss amount for the Crypto Charges, claiming he borrowed less and repaid significant sums, reducing the actual loss. He argues against an enhancement for involving 10 or more victims, stating Mango Markets users were reimbursed within weeks without financial harm. Additionally, he challenges a sophisticated means enhancement, denying the use of fraudulent identities to avoid detection. For the CP Charge, he seeks a three-point reduction for acceptance of responsibility, asserting his guilty plea conserved judicial resources despite the Crypto Charges trial.
The memorandum references Eisenberg’s family support, with letters from relatives describing his absence’s impact and confidence in his reform. It also cites his time at MDC—over two years by sentencing—as transformative, reinforcing his resolve to avoid future legal trouble.
The filing concludes by requesting a sentence below the guidelines range, asserting it aligns with the sentencing goals under 18 U.S.C. § 3553.
Please contact BlockTribune for access to a copy of this filing.
