U.S. District Judge Arun Subramaniam dismissed fraud and manipulation charges against Avraham Eisenberg in the Mango Markets crypto case.
The decision exposed regulatory loopholes and increased the push for crypto regulations and ethical standards.
The court ruled that Eisenberg did not commit fraud but took advantage of flaws in an open-source DeFi protocol.
The verdict sets a precedent on interactions with decentralized protocols, highlighting the need for clearer regulatory frameworks to prevent exploitation and ensure market stability.