Court Ruling in Mango Markets Case 

U.S. District Judge Arun Subramanian overturned fraud and market manipulation convictions against Avraham Eisenberg, accused of a $110 million fraud in Mango Markets. The court ruled there was insufficient evidence that Eisenberg made serious misrepresentations to the platform. This weakens the government’s case and acquits Eisenberg of one charge. Eisenberg had inflated the MNGO token price by over 1300% in a short time and used those gains as collateral to withdraw $110 million from Mango Markets. 

Record Inflows into Bitcoin ETFs 

U.S.-based spot Bitcoin ETFs recorded a total inflow of $2.75 billion this week, about 4.5 times the $608 million inflow the previous week, according to Farside data. BlackRock’s IBIT fund notably saw $430.8 million daily inflows for eight consecutive days. In contrast, Grayscale’s GBTC fund experienced outflows of $89.2 million, and ARK 21Shares’ ARKB fund saw $73.9 million withdrawn. 

Trump’s Crypto Dinner Under Investigation 

Thirty-five members of the U.S. House of Representatives sent a letter on May 22 to the Department of Justice requesting an investigation into Trump’s memecoin investors dinner. They asked Edward Sullivan to probe whether the event violated federal bribery laws or the U.S. Constitution’s “Foreign Emoluments Clause.” 

Most attendees were reportedly foreign nationals linked to crypto exchanges, according to Bloomberg. The letter stated: 

“U.S. law prohibits foreign persons from contributing to U.S. political campaigns. However, the $TRUMP memecoin, including the promotion of a dinner promising special access to the president, opens the door for foreign governments to buy influence with the president without disclosing their identities.” 

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Launched in 2020, Nate was marketed as a universal AI shopping cart, automating everything from entering shipping details to completing online purchases. However, court documents reveal that transactions were handled manually by hundreds of contractors in a Philippine call center.

“Saniger exploited the allure of AI to create a false narrative of innovation,” stated U.S. Attorney Matthew Podolsky. He emphasized that such fraud not only harms investors but also undermines genuine AI innovation by eroding trust.

Millions Raised Under False Promises

Saniger allegedly secured over $40 million in funding by convincing venture capitalists that the app’s backend was powered by advanced automation. Internally, employees were told to conceal the use of human labor. Though Nate had acquired some third-party AI tech, the app’s true automation rate was close to zero, according to authorities.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

In late 2021, Saniger instructed developers to build bots to automate parts of the process during the holiday rush. However, even these efforts were limited in scope and effectiveness.

Facing Up to 20 Years in Prison

The Department of Justice has charged Saniger with both securities fraud and wire fraud, each carrying a potential sentence of up to 20 years. The SEC’s civil complaint also seeks to bar him from executive roles in similar companies and demands the return of investor funds.

Nate ceased operations in January 2023, following media scrutiny of its actual capabilities. Saniger then terminated all staff, effectively shutting down the company.

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