

What Does Mango Markets Exploiter Avi Eisenberg's Arrest in Puerto Rico Mean for DeFi? - Ep. 441
4 snips Jan 10, 2023
Gabriel Shapiro, general counsel at Delphi Labs, and Collins Belton, managing partner at Brookwood P.C., dissect the arrest of Avi Eisenberg, implicated in market manipulation. They engage in a heated debate about the implications for DeFi governance and the principle of 'code is law.' The discussion navigates whether utilizing DeFi code smartly constitutes fraud, the role of DAOs in governance, and the liability of those involved in Mango Markets. They also ponder the legal future of crypto amidst increasing scrutiny.
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DeFi Norms vs. Legality
- Avi Eisenberg's actions were arguably ethical within DeFi norms, but likely illegal.
- This highlights the tension between DeFi ethics and legal frameworks.
Code is Law
- Crypto operates on the principle of "code is law," where the code's execution determines outcomes.
- This differs from traditional finance, where social norms and expectations play a larger role.
DeFi Exploits and Community Norms
- DeFi exploits are common, and most perpetrators go unpunished.
- The community generally accepts this as a risk of participating in DeFi.