The decision to delay Eidenberg’s sentencing was made after requests for more time to address the complexity of the case. Meanwhile, Do Kwon faces a 2026 trial for fraud related to the Terra ecosystem collapse, with prosecutors seeking key evidence from his emails, devices, and trading records. Coinbase recently secured a partial legal victory with a court-approved appeal in its SEC case. FTX is still budding heads in the crypto space after it refuted claims by Backpack about acquiring its European arm. Avraham Eisenberg Sentencing Delayed Avraham “Avi” Eisenberg, who was convicted of fraud and market manipulation related to an exploit of the Mango Markets decentralized exchange, is set to be sentenced on April 10. This decision follows a Jan. 7 filing in the US District Court for the Southern District of New York (SDNY), where Judge Arun Subramanian granted a request from Eisenberg’s legal team to postpone the sentencing. Initially scheduled for Dec. 12 and later moved to Feb. 11, the delay was asked for due to the complexity of sentencing issues and the factual record of the case. The US prosecutor’s office did not object to the change. Eisenberg’s request to delay sentencing (Source: Courtlistener ) Eisenberg was arrested in December of 2022 after exploiting Mango Markets in October 2022 by draining over $100 million from the platform. While he returned approximately $67 million, he still kept more than $40 million after a governance vote by the community. Eisenberg has been in custody for nearly two years and could face up to 20 years in prison if sentenced to the maximum penalty, served consecutively. In addition to the criminal case, Eisenberg may also face civil enforcement actions from the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). These cases were stayed in March of 2023 and are expected to resume after the conclusion of his criminal proceedings. The SDNY prosecutors handling Eisenberg’s case have also pursued charges against other high-profile people in the crypto industry, including former FTX CEO Sam Bankman-Fried, Terraform Labs co-founder Do Kwon, and former Celsius CEO Alex Mashinsky. Kwon was recently extradited to the United States from Montenegro, and is scheduled to face trial in January 2026. Prosecutors Target Do Kwon’s Email and Social Media Prosecutors in the United States outlined their discovery plans in the criminal case against Do Kwon, including search warrants for his email and Twitter accounts. A Jan. 7 filing in the US District Court for the Southern District of New York revealed that prosecutors anticipate uncovering “multiple terabytes of data” relevant to their case. The discovery includes search warrants for Kwon’s personal and business email accounts, his Twitter account, and four of his electronic devices, as well as trading records and materials from crypto exchanges. Kwon faces nine felony charges in the US for alleged fraud tied to the collapse of the Terra ecosystem in 2022, and was extradited from Montenegro on Dec. 31 after a year-long process involving competing requests from the US and South Korea. Prosecutors also revealed that recordings of Kwon, made without his knowledge and not directed by the government, may be included in the evidence for discovery. Some of these recordings were used in a prior SEC civil case against Kwon and Terraform Labs, which found both parties liable for fraud. Charges against Kwon (Source: Courtlistener ) In March of 2023, US prosecutors initially charged Kwon with eight counts, but later added a ninth count of money laundering conspiracy in a sealed superseding indictment in 2024. The money laundering charge is very similar to the case against Sam Bankman-Fried, who faced issues with charges added after his extradition from the Bahamas. Anticipating similar challenges, US prosecutors in Kwon’s case plan to ask for a waiver from Montenegro’s rule of specialty, which could potentially complicate the inclusion of the ninth charge. Kwon’s trial is scheduled to begin on Jan. 26, 2026, and he faces a potential lengthy prison sentence if convicted. Coinbase Wins Appeal in SEC Case Meanwhile, Coinbase achieved a small victory in its legal battle with the SEC after a federal judge granted an order for an interlocutory appeal. Judge Katherine Failla of the US District Court for the Southern District of New York approved Coinbase’s request to appeal an earlier decision denying its motion for judgment. All proceedings in the case have been stayed until the Second Circuit rules on the appeal. At the heart of the SEC’s case against Coinbase is the claim that certain transactions involving crypto assets qualify as investment contracts and therefore fall under the SEC’s jurisdiction as securities. Judge Failla acknowledged the possibility of reversal in her interpretation of investment contracts under the Howey test, due to conflicting rulings in other SEC cases against Ripple Labs and Terraform Labs. These cases led to varying interpretations of what constitutes a security, including a decision in the Ripple case stating that XRP token sales on exchanges were not securities . The SEC filed its enforcement action against Coinbase in June of 2023, and alleged that the exchange operated as an unregistered securities exchange, broker, and clearing agency since 2019. However, the SEC’s approach when it comes to regulating the crypto industry has drawn a lot of criticism from many in the sector, including claims that it has overstepped its authority under Chair Gary Gensler. Coinbase’s chief legal officer, Paul Grewal , shared that he appreciates the court’s decision to grant the appeal. The company has also made it a priority to expose alleged government campaigns against crypto firms, like Operation Chokepoint 2.0, which targeted the debanking of crypto businesses. Coinbase has also been active in politics by contributing alongside Ripple to the political action committee Fairshake. This PAC spent over $90 million in the 2024 elections supporting pro-crypto candidates. FTX Denies Approval of Backpack’s FTX EU Acquisition Despite the sentencing of FTX founder Sam Bankman-Fried last year, the company still finds itself in trouble with the crypto industry. FTX recently refuted claims made by crypto exchange Backpack regarding its acquisition of FTX’s European arm, FTX EU. In a Jan. 8 statement, FTX clarified that the acquisition was not yet approved by the US Bankruptcy Court for the District of Delaware and that Backpack’s announcements were made without the knowledge or involvement of FTX. The bankrupt exchange also clarified that Backpack was not authorized to distribute repayments to FTX creditors. Backpack was founded by Solana developer Armani Ferrante, and it announced on Jan. 7 that it acquired FTX EU as part of a court-approved bankruptcy process and pledged to begin creditor repayments by February. However, FTX disputed these claims by stating that any indirect transfer of FTX EU to Backpack had not been disclosed to the bankruptcy court or approved. The company also pointed out that it remains solely responsible for returning funds to its former customers. The FTX debtors previously reached an agreement to sell FTX EU to “certain former insiders” of FTX Europe as part of a court-supervised settlement. FTX said it was informed of an indirect sale to Backpack only recently and that no official authorization was granted for Backpack to handle creditor repayments. Backpack plans to leverage FTX EU’s Markets in Financial Instruments Directive and Regulation (MiFID) II License to expand its European operations, but the company faced some challenges since its inception in 2022. The firm lost $14.5 million, or 88% of its operating funds, during FTX’s collapse but has continued limited operations with minimal funding. The exchange was initially funded by FTX and Jump Crypto. FTX’s reorganization plan took effect on Jan. 3, which allowed creditor repayments to start. Eligible customers, particularly those with claims under $50,000, will be part of an initial group to receive reimbursements within 60 days. Claims must be filed through the official website to qualify for repayment.