U.S. Judge Arun Subramanian overturns fraud convictions in the Mango Markets exploit case due to lack of proper venue in New York.
Eisenberg did not have significant ties to New York as he did not trade, communicate, or interact with Mango Markets from the state.
Judge Subramanian acquitted Eisenberg of wire fraud charge, stating that the behavior did not violate existing wire fraud laws, citing the absence of clear rules on Mango Markets about borrowing.
The Department of Justice may refile charges in a different venue, highlighting the complex legal landscape in decentralized finance with unresolved jurisdiction and regulatory issues.