Decentralized exchange Mango Markets is bolstering its resources to address the ongoing scrutiny from United States regulatory authorities. A proposal on Mango’s governance forum reveals that the decentralized autonomous organization running the exchange is set to approve a budget of $250,000 in USD Coin on January 6. This fund is intended for the hiring of a representative to handle inquiries from regulators regarding Mango Markets.
Upon approval, the representative role will be filled by Poland-based company Cyberbyte for a one-year term. Cyberbyte is owned by crypto developer Adrian Brzeziński, who also contributes to Mango Markets. The representative’s duties will encompass hiring legal counsel and facilitating resolutions to the U.S. regulatory matters.
Mango Markets suffered a significant exploit in October, resulting in a loss of cryptocurrencies worth $116 million. The attack was orchestrated by Avraham Eisenberg, who manipulated the value of Mango’s native token, MNGO, to secure substantial loans against the inflated collateral.
Eisenberg later admitted to being the exploiter, asserting that he had executed a “highly profitable trading strategy” under “legal open market actions.” However, in December, he was arrested 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 has also filed a lawsuit against him. Since his arrest, Eisenberg has been largely held in U.S. custody, with his trial scheduled for April.
This incident has brought Mango Markets under the scrutiny of U.S. regulators. In addition to the actions against Eisenberg, some regulators have initiated their own inquiries into Mango Markets. These inquiries are collectively referred to as the “U.S. regulatory matters.” As a representative for MangoDAO, Cyberbyte will receive an initial flat fee payment of $30,000, followed by an hourly rate of $500 in USDC.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇵🇱 🇵🇷 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Avraham Eisenberg, Adrian Brzeziński |
| Companies | Securities and Exchange Commission, Commodity Futures Trading Commission, Cyberbyte, United States regulatory authorities, MangoDAO, Department of Justice, Mango Markets |
| Currencies | TokenFi, USDC, Bitcoin |
| Securities | None |
