Decentralized exchange Mango Markets is responding to scrutiny from U.S. regulatory bodies by allocating $250,000 worth of USD Coin (USDC) to its course.
This move comes on the heels of recent woes, including a hack and ongoing legal proceedings that have led the DAO, or decentralized autonomous organization, to hire an intermediary who will guide the project through its regulatory battles.
Allocating resources for a solution
Mango Market’s DAO is responding to regulatory inquiries by approving a budget of $250,000 in USD Coin (USDC). This allocation, set for approval on Jan. 6, 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 represent MangoDAO for a one-year term. Responsibilities include engaging legal counsel and working towards resolutions to regulatory matters.
The hack and its aftermath
Over a year ago, Mango Markets experienced a notable hack that led to a loss of $116 million in crypto assets. The hack involved manipulation of the protocol’s treasury through an oracle, with Avraham Eisenberg leading the attack.
Claiming to have carried out a highly profitable trading approach, Eisenberg manipulated the value of Mango’s native token (MNGO) to obtain substantial loans against inflated collateral.
However, his actions led to his arrest in Puerto Rico in December 2022, under charges of market manipulation and fraud. Following the incident, regulatory bodies such as the CFTC and SEC, charged him with a fraudulent scheme that led to 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, cooperated in pursuing civil penalties and injunctive relief.
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Simultaneously, Mango Markets’ parent company initiated a lawsuit against Eisenberg in the Southern District of New York U.S. District Court. While Eisenberg had initially agreed to refund $67 million, Mango Labs is pursuing the remaining amount through legal channels.
With a mixture of CeFi and DeFi features on its platform, Mango Markets envisions a future where financial services would be cheaper and accessible to cryptocurrency users through margin trading, lending, and perpetual futures.
At the time of writing, MNGO is trading at $0.019, representing a 20% decrease in the last seven days, per data from CoinGecko.
SEC nears decision on Bitcoin ETFs
Meanwhile, spot Bitcoin ETFs’ fate could be revealed by the SEC soon. Recent reports indicate that, after the SEC’s discussions with major exchanges such as the New York Stock Exchange (NYSE) and Nasdaq, it may reveal its results by Jan. 10.
Analysts and ETF issuers express optimism, anticipating a favorable decision after witnessing the SEC’s engagement with key industry players.
This contrasts with Matrixport’s prediction of a possible denial until the second quarter of 2024.
As of writing this, BTC is trading at $44,000 with an increase in value of 3.7% over the last seven days
At the same time, market participants dealing with cryptocurrencies are focusing on the SEC – they expect approval of ETFs that could be a breakthrough in terms of how Bitcoin (BTC) can make more inroads into the traditional finance space.
Read more: Hacktober: A Roundup of the Crypto Industry Hacks and Heists in October
