Mango Markets, a decentralized exchange, is gearing up to deal with increased scrutiny from U.S. regulatory authorities. According to a proposal on Mango’s governance forum, the decentralized autonomous organization overseeing the exchange is considering allocating a budget of $250,000 in USD Coin (USDC) on January 6. This fund will be used to hire a representative tasked with addressing inquiries from “certain regulators” regarding Mango Markets.
If approved, MangoDAO will be represented by the Poland-based company Cyberbyte, under a one-year agreement. This company is owned by crypto developer Adrian Brzeziński, who is also a contributor to Mango Markets. The representative’s responsibilities include the hiring of legal counsel and facilitating resolutions to U.S. regulatory matters in a cooperative manner.
In October, the Mango Markets protocol fell victim to an exploit, resulting in the loss of $116 million worth of cryptocurrencies. The attack was orchestrated by Avraham Eisenberg, who manipulated the value of Mango’s native token, MNGO, to secure substantial loans against overinflated collateral. Eisenberg later confessed to being the exploiter, claiming to have executed a “highly profitable trading strategy” through “legal open market actions.” However, he was arrested in December 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 (DOJ). Mango Markets has also filed a lawsuit against Eisenberg. He has been primarily held in U.S. custody since his arrest and is awaiting trial in April. Furthermore, this incident brought Mango Markets under the scrutiny of U.S. regulators.
In response to these U.S. regulatory matters, Cyberbyte, as a representative for MangoDAO, will initially receive a flat fee payment of $30,000, followed by an hourly rate of $500 in USDC.
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