A U.S. District Court judge dismissed fraud charges against Avraham Eisenberg, investor accused of orchestrating the $110 million Mango Markets exploit. Judge Arun Subramaniam ruled that the government failed to provide sufficient evidence demonstrating that Eisenberg committed any deceptive act while utilizing the open-source protocol. The decision has significant implications for the future of DeFi regulation and its interpretation. Eisenberg manipulated MNGO coin price, leading to large withdrawals from the decentralized exchange. While his legal team claims he merely exploited an unanticipated flaw in Mango Markets’ code, this ruling underscores the challenges of navigating regulatory complexities within a rapidly evolving cryptocurrency landscape. The case continues to raise questions about ethical conduct in DeFi and its connection to criminal offenses. Eisenberg is currently under detention for unrelated child pornography charges.