Mango Markets allocates $250,000 to respond to U.S. regulatory probe
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Decentralized exchange Mango Markets responds to U.S. regulatory scrutiny by allocating $250,000 worth of USD tokens (U.S. Department of Agriculture) Let nature take its course.
The move comes after recent troubles, including hacks and ongoing legal proceedings, led to the DAO (Decentralized Autonomous Organization) hiring an intermediary to guide the project through regulatory battles.
Allocate resources to the solution
Mango Market’s DAO is responding to regulatory inquiries by approving a $250,000 USD Coin (USDC) budget. The allocation, which will be approved on January 6, is to hire a representative to help address concerns raised by U.S. regulators.
If approved, Cyberbyte, a Polish company owned by Mango Markets contributor Adrian Brzeziński, will represent MangoDAO for a one-year term. Responsibilities include retaining legal counsel and working to resolve regulatory issues.
Hacking attacks and their consequences
A year ago, Mango Markets experienced a major hack that resulted in the loss of $116 million in crypto assets. The hack, which involved manipulation of the protocol’s vaults via oracles, was led by Avraham Eisenberg.
Eisenberg claimed to have implemented highly profitable trading methods, manipulating the value of Mango’s native token (MNGO) to obtain large loans with inflated collateral.
However, his actions led to his arrest in Puerto Rico in December 2022 on charges of market manipulation and fraud. Following the incident, regulatory agencies including the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) accused him of operating a fraudulent scheme that resulted in losses for Mango Markets.
Eisenberg’s alleged conduct includes draining assets from Mango Markets after artificially inflating the price of the token. Regulators, including the FBI and the Commodity Futures Trading Commission (CFTC), cooperated in seeking civil penalties and injunctive relief.
Meanwhile, the parent company of Mango Markets filed a lawsuit against Eisenberg in the U.S. District Court for the Southern District of New York. While Eisenberg initially agreed to return $67 million, Mango Labs is pursuing legal channels to recover the remainder.
The Mango Markets platform integrates CeFi and DeFi functions, and it is expected that financial services will be cheaper in the future, and cryptocurrency users can obtain cheaper financial services through margin trading, lending and perpetual futures.
As of this writing, MNGO is trading at $0.019, down 20% in the past seven days, according to data from Coin Gecko.
SEC to make decision on Bitcoin ETF soon
Meanwhile, the fate of spot Bitcoin ETFs may soon be revealed by the SEC. Recent reports indicate that the SEC may announce the results on January 10 after discussions with major exchanges such as the New York Stock Exchange (NYSE) and Nasdaq.
Analysts and ETF issuers expressed optimism that a favorable decision would be expected after witnessing the SEC’s engagement with major industry players.
This contrasts with Matrixport’s forecast of possible rejections before the second quarter of 2024.
At the time of writing, BTC is trading at $44,000, up 3.7% in value over the past seven days
Meanwhile, market participants dealing with cryptocurrencies are keeping an eye on the U.S. Securities and Exchange Commission (SEC) — anticipating that ETF approval could be a breakthrough in how Bitcoin (BTC) makes further inroads into traditional finance.
