On January 20, the U.S. Securities and Exchange Commission filed charges against Avraham Eisenberg, alleging that he used manipulative and deceptive trading practices to siphon $116 million of digital assets from the Mango Markets digital asset trading platform. This happened just a few months after Eisenberg made a public statement on Twitter that he had made a lot of money on Mango Markets and opined that "It is not illegal to be smarter than your counterparties in a swap transaction nor is it improper to understand a financial product better than the people who invented that product." The SEC's recent actions make clear that it disagrees with Eisenberg over whether his trading strategy was legal.
In this video, Jeffrey Alberts, co-chair of Pryor Cashman's FinTech Group, discusses what federal agencies allege that Eisenberg did, why these agencies concluded it was unlawful, and what people who trade digital assets can do to stay on the right side of the law.
SEC v Eisenberg (Mango Markets) - YouTube Watch video.
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