"Highly Profitable" Crypto Trader Faces 20 Years In Prison
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- Опубликовано: 27 май 2024
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Mango Markets was a decentralized crypto exchange. In 2022 a trader named Avi Eisenberg found a way to extract $114 million from other traders on Mango Markets. He claimed what he did was legal. But he was soon arrested and now faces up to 20 years in prison.
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0:00 - 2:16 Intro
2:17 - 4:59 Mango Markets
5:00 - 9:12 Avi Eisenberg
9:13 - 15:02 The Attack
15:03 Eisenberg’s Psychology 
Кино
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A video on a scam, sponsored by a scam.
Dude... Are you really that desperate for income? This is, at best, a completely unregulated gambling website and, at worst, a blatant scam.
this is clear and plain gambling man, there better sponsors out there, seems hypocrytical coming from you
Bruh... Kalshi is a betting site, there's no investment there lol
May as well call playing blackjack or roulette at the casino investing as well
The caption should say Sponsored by a scam
Smart enough to pull it off, dumb enough to tell everybody about it
Fr this seems to be a type.
The dumbest thing he did was come back. He should have just stayed in a non-extradition country.
Some men wanna show off their stuff.
@@grahamjones5400 i want to show my stuff 😉😉😉
Right: not exactly the brightest bulb ... hope he gets 20+ years ...
Bro. That sponsor is just gambling, not trading. Dress it up however you like, its still just gambling.
Yup. While he keeps calling crypto sketchy he's shilling that crap.
so?
Your point?
Most of Wall Street Millennials sponsors are just straight up scams. I love his videos, but its clear the man will pretty much advertise anyone who offers him money :D
If they're sponsoring RUclips videos you know there is something wrong.
Are we seriously running ads for glorified gambling apps now?
go bak to your nap grandma
At least it's not another monthly service that will supposedly remove you from everybody's database. Or a bottle with a scent cartridge. Nice change of pace to see a different scam.
1:38 whatever pays the bill I guess
Feel free to pay for an ad for your non gambling app.
What do you mean glorified? It's literally a gambling website
I wonder how he thought sunglasses would make him anonymous when he’s the only person in the history of mankind to have that facial hair.
Half of Israel would like to have a word lol
And some neckbeards too
The sun glasses were More a sign of his own feeling of guilt
@johnbean2596 stop being an anti-semite
@Stoneface_ bruh semites (a group of people we have a non offensive word for, because they share a geographic origin and genetic traits) have a features in common. One of these is their beard hair. Is that a negative thing? I don't think so. Stop hating beards or stop being stupid.
Maybe visit Israel too.
Loved the "due to the degenerate nature of many crypto traders" line 😂
I went to the comments immediately after that line 😂😂😂
He said the quiet part out loud! 😅
Crypto traders are like wsb traders on speed 😂
Especially bold given the sponsor is a gambling service.
He always referred to WSB users as "Wall Street degenerates" so I'm not surprised
I think arguably the biggest crime was the beard.
He was bearded in his den
Agreed. It's like they think just because they can grow a beard they should, and as long as possible even though very few of their beard follicles have the ability to grow long facial hair leaving it scraggly af. Some guys can grow a long, full beard and it's beautiful. Some absolutely cannot, this dude being one of them. Doesn't mean you have to be clean shaven, just trim it some and keep it neat.
But yeah this is certified 100% spindly neckbeard status.
Its a culture thing. He looks like a lubavitcher.
May be he likes ZZ Top although he is far from a sharp dressed man.
it's distracting how it's pulling to one direction
Is Kalshi just sports gambling for non-sports?
prediction markets have been a thing for a bit now
Also equity markets are just sports gambling for non sports. I invite anyone to disprove me on either of those points. Legitimately don't understand why these comments are so worked up lmao
It's every bit as sketchy as the crypto this guy keeps trash taking
Absolutely. It is not "investing" because the money is not acting as capitol for business, and it is not "trading" because securities are not being exchanged. It is explicitly betting, with odds, payouts and everything.
This is, frankly, disgusting.
I think that the markets on Kalshi have a huge potential for manipulation and insider information
@@MrNH718 He's seriously so bad at picking sponsors it's embarrassing.
His strategy is so smart, I am not even mad about his scamming. He really proved the size of the crypto sandcastle.
The same strategies are used by investment banks and hedge funds though, just on a much larger scale, especially in the commodities markets.
It's actually two guys they just same the exact same voice. Check out their other channel broken business models.
@@parafitality2730You almost have it
He strikes me as a person who may take a reduced sentence in return for service to law enforcement.
Kalshi is betting, not investing. Your channel is getting big, I strongly advise you to msintsijn integrity and choose your words more carefully. Please be a decent person not overcome by greed. You'll earn more over the long run with reputation.
OMG mind your own business and stop telling ppl what to do.
@@justicedemocrat9357shut up
@@justicedemocrat9357 Take your own advice
@@justicedemocrat9357 Nah, mate. Mind *YOUR* own business and *YOU* stop telling what to do.
@@justicedemocrat9357that's exactly why people get scammed because nobody tells them the truth
Once again my vanilla investing style has protected me from losing my shirt in yet another crypto scam.
Yep. I won't touch the stuff.
grow a pair buddy
What are your returns does it match the market does it out preform it or are you just putting it under your bed?
@@JJ-zr6fu 12% since I started investing in 2004. All dividends and capital gains are re invested.
Same! I put my money in my house, index funds, and target date funds, many of which have tax benefits that amplify my gains. It's boring but proven.
At least SBF will have someone with common interests to talk to
They both have a lot in common
Hopefully Sam BrilloHead and this Avraham guy get traded around for cigarettes and snacks by prison gangs
Both are jews @@xkidmidnightx
@@xkidmidnightxBoth can talk about the Talmud/Torah while in jail 😂😂
@@Stoneface_ Oy vey. Stop noticing
Only a matter of time before WSM makes a video exposing one of his sponsors.
His mistake was to think that code is law so anything the code allows you to do is legal. But as it turns out, laws apply even if you do it on a computer. Who knew?
What the hell are you babbling about?
@@justicedemocrat9357 Just because you didn’t understand what I wrote doesn’t mean I was babbling. If you search online for Crypto Code Is Law you actually get this case since his argument is that anything the code allows is legal. But sadly for him, code isn’t law.
@@justicedemocrat9357hes assuming that the guy thought "code" aka possibile actions in the market are above laws.... i think, its hard to decipher
He's right though, companies ARE liable for errors in their business logic. They can't just lose money and then claim their customers robbed them because it didn't work out the way they hoped.
@@LarsLarsen77 First off, he's already been found guilty of fraud, so you might want to rethink your analysis. And your framing of it is wrong because he didn't use the flaw to steal the money, he used it to get a fraudulent loan with the intent of not repaying it.
And just to make it clear because the video didn't describe the fraud succinctly enough: He didn't steal the money by inflating assets and running off with them. The inflated asset was used to get a fraudulent loan that he ran off with. But even if the asset value was legit, if you use them as collateral for a loan and the price collapses, you have to repay the loan. And if you use fraudulent financial statements to get a bank loan you won't repay, that's fraud whether the loan was approved by a human or computer code.
Kalshi good, degenerate gambling with crypto currencies bad. Sounds legit.
I love the ad- I roll up to a Las Vegas casino and call it local investment. Betting on the Lakers and calling it an investment. Insane.
i am sorry, did wsm just call gambling "investing", guess that shows that you cant trust anyone on the internet.
I like how that garbage sponsor calls them traders instead of betters or punters or any of the other things that mean gullible rube
I love how he said ***you get nothing*** instead of saying ***you lose your money***
If kalshi lets me bet which drill rapper goes down next, sign me up.
So he used the artificial inflated value of his long position as collateral to the BTC loans, isn’t he obligated to pay back the difference once the long position collapsed back down?
The losing position did. The winning positions didn’t. The exchange didn’t know it’s the same person.
Exactly. That’s the crime. All he really did was take out a huge loan based on an over-inflated asset and refuse to repay the loan once the asset deflated. The only thing that made it clever was that he did it all on one platform.
But it’s no different than if I bought a penny stock, pumped up the price, got a bank to loan me money using the stock as collateral, then refused to repay the loan once the stock collapsed. It’s weird that he somehow imagined he’d found a loophole. He obviously knew crypto was a scam but didn’t see how getting a fraudulent loan wasn’t a legit money hack.
@@jackbauer580 That’s not correct. Once the price collapsed there was no winning or losing position. He only kept the price up long enough to get the loan and then the price collapsed, so the long and short positions went back to zero.
His theft was that he used a pumped asset as collateral for a loan knowing it was worthless. It’s sad that he thought he found a clever loophole.
@@DoctorBiobrain Yes, he basically did the same thing as people who messed with the tracking numbers on fake cheques so that it would take longer than three days for the bank to realize it was fake, and then withdraw the money the cheque had "deposited" after the three day wait period the banks imposed was over. The failure of Mango Markets was that they failed to close out both the long and short positions when the short position ran out of money. Exploiting a flaw that lets you fake having a lot of money in an account when you know it isn't actually there is fraud, and the fact that a system didn't account for that type of fraud happening doesn't make it not fraud.
@@DoctorBiobrainSometimes it's hard to follow the Explanations in english, thanks a lot for the concisely explaining it again!
highly profitable is always a question of: for whom.
For your mom.
Love the use of unsophisticated investors rather than stupid greedy investors
some of those "investors" are kids manipulated by influencers like logan Paul
Some of them are sponsors of his channel
So he has to be gentle.
Or 'morons'
It does appear to be illegal because one of his accounts was several million in debt and he had no intention when he opened it to cover the position, this is similar to if you take out debt with no intention of paying it back, that is also in most jurisdictions regarded as fraud.
Today's sponsor seems like a gambling site to me. What benefit does it make for the society?
It's investing
“Betting on Biden’s approval rating is a great way to hedge your traditional investments”
Lmao bro. 😂🤣
Just say you like using it you don’t have to lie
0dte otm calls Biden Approval Rating
That product being advertised is basically gambling
Bitcoin is on its way to breaking records, getting closer to hitting new high prices, showing that it's gaining more value and could go even higher than we've seen before. This could mean great things for people looking to invest, suggesting now might be a good time to get involved before it jumps even higher. It's an exciting moment that could change the game in general...managed to grow a nest egg of around 2.1Blitcoin to a decent 11.4Biitcoin. At the heart of this evolution is Samantha Jack , whose deep understanding of both cryptocurrency and traditional trading has been instrumental. Her holistic approach to investment and commitment to staying abreast of market trends make her an invaluable ally in navigating this new era in cryptocurrency investment
Samantha's analyses go beyond surface-level trends. She delves into technical, fundamental, and sentiment analysis, providing a holistic view of the market..
I’m new at this, how can I reach her?
She is all about simple technique that are highly profitable, I really admire her winning mentality.
gram with her username
Fxsamanthaj, that's it
Not WSM advertising gambling site with a straight face.
I love how you do in depth business analyses, and then completely sell your souls to what amounts to gambling and “buying pieces of art”.
How do you look yourself in the mirror when your whole gimmick is calling out bad business and then shill them at the same time?
...probably with the reasonable expectation that you're not a bloody idiot!
The channel exists to make money. Nothing else.
@@rumpelstiltskn5574Same like in my opinion HE of all people can promote them because everyone watching the channel should spot the similiarities of those scams to the ones in his vids and the rest.... they'll fall for some other scam anyway sadly
Sounds like Mango Market found a scapegoat for their flawed product. If he didn't exploit it someone else would have done this exploit.
Sounds like if you can get the money out of the bank it's the banks fault because they knew someone was gonna try to steal something.
The major flaw in the Mango system is not enough sources for Oracle data.
nope, the price of small caps can fluctuate as much as it wants, the oracle works fine. the short position should have been margin called once a threshold is reached and the positions should settle then and there (his five mio short into the five mio long acc. the money was in the accounts, so its possible). you cant grant anonymous accounts credit (aka negativ balance). the entire businessmodel of banks basically is to determine if people/businesses are going to pay back their debt, but you gotta know who you are dealing with to do that.
"He transferred the money of all other users to himself"
That just sounds like a more complex description of theft lmao
This makes zero sense, how on earth account B was not liquidated the moment price had risen by 25% (on 4x leverage that means account B is bankrupt). The very effing core of both normal and decentralized crypto exchanges that gove leverage on collateral is instant liquidation.
yep. anonymous debt isnt worth squat
because it was an atomic transaction so price slippage and withdrawal occurred in the same transaction. their existing system had literally zero time to respond, which is why they should have required at least several blocks of operations to finalize between slippage of that amount and withdrawal
@@swabbie825
you have any links to what actually happened step by step cause this vid is trash and explains it badly
He manipulated an unregulated market so I don't think he did anything illegal. Still he should have never gone back to the US
I think everything was legal up to the borrowing part. If he paid the borrowed crypto back he would probably have a pretty good defence.
Unregulated just means there’s not a regulator overseeing things, it doesn’t mean laws don’t apply. Regulated markets are proactive about enforcing rules to prevent criminals from criming in the first place.
If you leave your door unlocked, there’s no regulator who makes sure that only licensed individuals can enter your house. If I steal all your stuff I get arrested after the fact. Unregulated doesn’t mean lawless.
Manipulating any kind of market can easily be charged as fraud. You are never safe from prosecutors. The law is plenty vague and they can and will stretch it to fit anything they want. Really stupid of him to think he was ever in the clear and not hide his tracks. They can always get you on something if you get their attention.
@@bubba99009 The law isn’t vague. What he did is the exact thing the law is made for. It was always a myth that crypto was a new type of investment that was beyond the law. The government was just slow about enforcing existing laws because they didn’t take it seriously until the scammers had already been scamming for awhile.
No such thing as Free money
The US has been printing them for decades
Welfare benefits are free, food pantries are free, libraries are free.
You can use the resources get useful skills and generate income.😅
@@grahamjones5400 taxes
@@grahamjones5400 *Paid for by taxpayer dollars
Banging out the content! Awesome. I enjoy the channel. 😊
Trustworthy face
Yes if you're hiring him for a hit.
Nose knows
oy vey
*What do I think of Avi Eisenberg? Jewish version of Shia LaBeouf.*
Shia isn't Jewish?
Shia is a jew too
Shia has talent
*FYI "Kalshi" is not the first decision market of its kind in the US ... "Predict It" has been around nearly a decade longer.*
0:43 "extracted" seems to be the wrong term for someone taking money from others, am i wrong?
Kalshi is a betting company, not financial investment trader.
RUclipsrs need to be more transparent to their viewers.
Any descent person should investigate his or hers sponsors before taking any money.
Unsubscribe from any channels that promote financial bs.
Nice job on this Sir! A complex topic that you made make sense!
And - he knew what he was doing; if it was all legit - why did he take off?
Avi is GUILTY AF!
I get taking sponsors for gambling, and trading. But don't understand the skepticism for crypto, and no qualms over betting. Crypto I would say has utility for black market areas, along with betting.
Eisenberg is Finkle
... Finkle is Eisenberg!
Oh, my GOD! Eisenberg is a man!
bs sponsor
gonna be honest the sponsors you chose to advertise make you seem waaaay less credible
lol investing or betting. Pick one. What a sell out. What is this kalshi bs
Yeah, extremely poor choice of sponsors. Leaves a bad taste.
RUclipsrs are just scammers. Especially in the finance niche
I know there are cases of youtubers taking shitty sponsor because its not what they know, get roasted then learn their lesson but finance channel taking gambling website sponsor? Sketchy as fuck
I wanna see the state lottery sponsor this channel, that'll ensure credibility, at least people actually get paid by the state lottery.
Also they should have let that name generator run for a few more minutes. What a stupid name.
Definitely a person with a great eye for detail. Reminds one of Frank Abagnale and cheque kiting.
I enjoy some of your videos, but often times they’re ripe with misinformation and you then shill the things you criticize but portray them as a safer, better alternative. Shame on you, dude. You’re no better than the people you criticize as you shill the same bs to your audience
Wearing those sunglasses and earbuds totally worked; I had no idea who he was - lol
"Trading" on Kalshi?? Give me a break, its fucking GAMBLING.
Companies are liable for errors in their business logic.
So you sponsor a scammer while talking about a guy who did the same thing as your sponsor? 🤔
Fled the country.I wonder which country he fled to...hummm
The arrogance of crypto bros is the most frustrating part. His defense is the equivalent of robbing a house and saying “Your door was unlocked, so I was allowed to come in and take what I want.”
That sponsor is hilarious - that's an interesting way to get into the gambling business by calling it investing. Have to give them props for that I suppose.
Is it just me or does this add sound like gambling? You can "invest" into your prediction of something. If you are right you get money if you are wrong the house gets money. How is this legal in America?
It's what I've always wanted in my life
Yeah Kalshi isn't trading... it's just straight gambling. Calling them markets is misleading at best.
Eisenberg, he's the master cook, not the consumer.
Only reason he got outed is because he clearly had a rtarded ego and outed himself. If he considered the consequences before doing any of this then the odds of anyone finding out it is him was close to if not ZERO. Ego landed him in jail. The end.
Why do they always come back to you a US jurisdiction?I'm mind boggled. Every time, they go back to us jurisdiction or us extradition country
He smart.
They should play this video in the courtroom so everyone actually gets what he did!
I don't think he committed a crime. "Code is Law" is the motto of the Crypto Bros, right? Therefore, I think it is reasonable to assume that, unless Mango had specific rules against it, everyone using Mango agreed that whatever the code says goes. Since he didn't have any special access to the code, he was working with the same information as everyone else. Therefore he followed the rules that they had implicitly agreed to. Therefore there's no victim. Therefore no crime occurred.
Code is a law until the big ones in crypto lose money. There is famous example in ethereal as a lot of big holders lost money in some crypto hedge fund. They just fork the blockchain and got their money back. 😂😂😂
Criminal. all gains from his 1 acct were losses of his other.
Not a criminal.
This kalshy thing isn't trading. It isn't holding positions. It isn't investing. It's gambling. You can just bet on outcomes. We've always had gambling.
his only mistake was not being a politician
Have at least a little self respect, that had to be the scummiest sponsor read I've heard yet on youtube.
The comparison of “stealing from neighbor’s unlocked door” is inappropriate. In this case, the neighbor (Mango), openly states (through its code) that anyone can come in and buy/sell/borrow, provided its rules (code) are followed, which they were.
The problem is here is that, through his own manipulative actions on other crypto exchanges, Eisenberg gained “insider knowledge” that the price of Mango token was going down. He exploited this “insider knowledge” by using Mango token, which was an illiquid commodity, as collateral and took out loans.
Hypothetically, let’s say a market researcher, who did not participate in the price manipulation of Mango token, observed the price of such tokens was unreasonably high (56 cents, compared to a fair price of 4 cents). That market researcher then executed the same strategy as Eisenberg and made some money. This is typical short sell, and is largely allowed.
he didn’t need to “finance the trade.” he took out a flash loan that didn’t require collateral because loan initiation and repayment is atomic (happens in the same transaction, so no risk of not repaying - the entire operation is either fully executed by the validator or it is not executed at all)
atomic transactions is basic knowledge on how smart contract blockchains work. it’s no wonder that all you see in crypto is zero-sum finance when you have minimal understanding of the actual technological achievements which can be used for many things, including finance
That fuzz around his chin is criminal, he should go to jail based on that alone!
Why wasn't Account B frozen on a margin call long before it was over 100 million in debt?
It was frozen, but this didn't affect account A. Mango Markets didn't know they were owned by the same person
Is Aerodome Base Crypto Same, Similar so high Apr
His trades may be dubious, but if he was illegally doing it, the inside traders at congress should be prosecuted as well. They are playing the game as well.
You didn’t understand what he did. This wasn’t insider trading, he got a fraudulent loan using a pumped asset as collateral and then didn’t repay the loan. If a member of Congress refused to repay a $100 million loan they got using pumped assets they’d be arrested too.
And insider trading means people getting info from inside the company. When Congress uses their knowledge to invest they’re not insiders. We really just need to ban them from investing directly.
4:16 the trading fees are like $3 collectively. Why on earth rely on a custodian for a bitcoin future contract??? That makes no sense at all.
Don’t hate the player hate the game.
To be exact, he made a legitimate trade contract on both sides, but then outed himself as the person owing all the money he gained and then some. So, the analogy that he suddenly had money deposited in his account isn't great. He thought he could somehow eat the sweet gains and just because his losses were "anonymous" he could legitimately launder his money, when in reality, all the hard crypto transactions are blatantly out in the open.
Him and Sam Brillo Head should be cellmates and traded around by prison gangs.
Sam Brillo Head?…. 😂😂😭😭😭👏👏👏👏🤣🤣🤣🤣
Scam Bank-Fraud aka Brillo Head.
Absolute insanity!
Promoting a tradingplattform in a video about a scammy trading platform while calling all crypto traders degenerates? Määääh...
He should be freed and the operators of Mango Markets arrested for putting out a shit product.
Technically he did steal because the 114 million dollars from real tokens was borrowed on margin from an account that had illegitimate funds.
Please don’t regulate us. Regulations prevent us from “innovating”.
he stole and did " nothing wrong "...problem with many these days
Put him in prison forever
I thought he was doing legit arbitrage at first … you got me!
Give the boy a job at the SEC. He has balls.
Calling Kalshi investing is gross.
Another one of them BERG's 👃🏻🤡🤣🤦🏻
Can't wait for the video on how Kalshi fooled everyone.
No Kalshi No❌. It is gambling 🎰
trump, zuckerberg, and musk should go to jail before this guy
why was he allowed to run away with the loan? isnt stuff like this handled via smart contracts in a closed off system? i.e. it allows u to use the funds for further trades but not withdraw it to private wallets
once the mango coin price collapsed, the contract should have been settled, returning/canceling the loan- what am I missing?
such a smart guy in the wrong use.
"Esteemed judges." 😂
Those super smart people can be staggeringly dumb.
14:20 vibe check: fail ❌
I had to watch twice and tbh, I still don't really understand what he did. Maybe they should just make him give the money back and call it a day? 🤷♂