Mango Markets sets aside $250k to address
In response to scrutiny from U.S. regulatory bodies, decentralized exchange Mango Markets is taking action by allocating $250,000 worth of USD Coin (USDC) to address the situation. This decision comes after a series of challenges, including a hack and ongoing legal proceedings that have prompted the DAO to hire an intermediary to navigate the regulatory battles.
The DAO of Mango Markets is responding to regulatory inquiries by approving a budget of $250,000 in USD Coin (USDC). This allocation, scheduled for approval on January 6th, aims to hire a representative who will assist in addressing concerns raised by U.S. regulators.
If approved, Poland-based company Cyberbyte, owned by Mango Markets contributor Adrian Brzeziński, will serve as the representative for MangoDAO for one year. The responsibilities include engaging legal counsel and working towards resolving regulatory matters.
The hack and its aftermath
Over a year ago, Mango Markets experienced a significant hack that resulted in a loss of $116 million in cryptocurrency assets. The hack involved manipulation of the protocol’s treasury through an oracle, with Avraham Eisenberg leading the attack.
Claiming to have implemented a highly profitable trading approach, Eisenberg manipulated the value of Mango’s native token (MNGO) to secure substantial loans against 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 bodies such as the CFTC and SEC charged him with a fraudulent scheme that caused losses for Mango Markets.
Eisenberg’s alleged actions included draining assets from Mango Markets after artificially inflating the token’s price. Regulatory bodies, including the FBI and CFTC, collaborated to pursue civil penalties and injunctive relief.
Simultaneously, Mango Markets’ parent company filed a lawsuit against Eisenberg in the Southern District of New York U.S. District Court. While Eisenberg initially agreed to refund $67 million, Mango Labs is pursuing the remaining amount through legal channels.
Mango Markets envisions a future where financial services are more affordable and accessible to cryptocurrency users through a combination of CeFi and DeFi features on its platform, including margin trading, lending, and perpetual futures.
As of now, MNGO is trading at $0.019, representing a 20% decrease in the last seven days, according to data from CoinGecko.
SEC nears decision on Bitcoin ETFs
Meanwhile, the fate of spot Bitcoin ETFs may soon be determined by the SEC. Recent reports suggest that after discussions with major exchanges such as the New York Stock Exchange (NYSE) and Nasdaq, the SEC may announce its decision by January 10th.
Analysts and ETF issuers are optimistic, expecting a favorable decision based on the SEC’s engagement with key industry players.
This is in contrast to Matrixport’s prediction of a potential denial until the second quarter of 2024.
Currently, BTC is trading at $44,000, with a 3.7% increase in value over the last seven days.
At the same time, market participants in the cryptocurrency space are closely watching the SEC, anticipating the approval of ETFs that could pave the way for Bitcoin to gain more traction in traditional finance.
Read more: Hacktober: A Roundup of the Crypto Industry Hacks and Heists in October. Follow Us on Google News.
