Mango Markets Allocates $250K to Tackle Regulatory Scrutiny After $116M Crypto Breach
Summary:
Mango Markets, a decentralized exchange, plans to use $250,000 in USD Coin (USDC) to recruit a representative to address regulatory scrutiny from US authorities. If approved, the exchange will be represented by Poland-based company Cyberbyte for a year. The exchange has been under investigation following a protocol breach in October which resulted in the loss of $116 million in cryptocurrency. The perpetrator, Avraham Eisenberg, faces charges of market manipulation and fraud; his trial is set for April.
Mango Markets, a decentralized exchange, is set to inject more personnel to buffet the rising scrutiny from US regulators. A proposal unveiled on Mango's governance forum revealed plans of the decentralized autonomous organization running the exchange to set aside a budget of $250,000 in USD Coin (USDC) on January 6. This fund aims to employ a spokesperson to respond to probing questions from regulators regarding Mango Markets.
Assuming the proposal passes, MangoDAO will be represented by Cyberbyte, a Poland-based firm, for a year. Adrian Brzeziński, a notable crypto developer, owns the company and has made significant contributions to Mango Markets. The representative has the duty of securing legal advice and fostering amicable solutions to US regulatory issues.
In October, Mango Market's protocol was compromised, resulting in cryptocurrency losses amounting to $116 million. Avraham Eisenberg spearheaded the assault by inflating the worth of Mango's native coin, MNGO, to secure large-scale loans backed by the overvalued collateral.
Eisenberg later exposed himself as the initiator, insisting that he executed a profitable trading strategy within the perimeters of legal market operations. Nevertheless, in December, he was apprehended in Puerto Rico on charges of market manipulation and fraud. Eisenberg is now facing lawsuits from the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Department of Justice. Mango Markets also lodged a lawsuit against Eisenberg. Currently, Eisenberg remains mainly in US custody as he awaits his April trial.
This scandal has attracted the attention of US regulators. Post-Mango Market's compromise in October 2022, several US regulators (including the DOJ, SEC, and CFTC) launched investigations against Eisenberg, holding him accountable for the exploit. Moreover, other regulators have initiated their own line of inquiry into Mango Markets. These investigations will collectively be labeled as "U.S. regulatory matters."
As a spokesman for MangoDAO, Cyberbyte will secure an upfront payment of $30,000, followed by an hourly compensation plan of $500 in USDC.
Published At
1/6/2024 12:11:44 AM
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