Decentralized exchange Mango Markets is responding to scrutiny from US regulators by allocating USD Coin worth $250,000 (USDC) to your course.
This move comes on the heels of recent issues, 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.
Assign 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 assignment, scheduled for approval on January 6, is intended to hire a representative who will help address concerns raised by US regulators.
If approved, Poland-based company Cyberbyte, owned by Mango Markets contributor Adrian Brzeziลski, will represent MangoDAO for a period of one year. Responsibilities include retaining legal counsel and working to resolve regulatory issues.
The hack and its consequences
Over a year ago, Mango Markets experienced a notable hack that resulted in a loss of $116 million in crypto assets. The hack involved manipulating the protocol's treasury through an oracle, with Avraham Eisenberg leading the attack.
claiming Having carried out a highly profitable trading approach, Eisenberg manipulated the value of the native Mango token (MNGO) to obtain substantial loans with 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 the SEC, loaded 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 price of the token. Regulatory agencies, including the FBI and CFTC, cooperated in pursuing civil penalties and injunctive relief.
Simultaneously, the parent company of Mango Markets initiated a lawsuit v. Eisenberg in the United States District Court for the Southern District of New York. While Eisenberg had initially agreed to refund $67 million, Mango Labs is seeking the remaining amount through legal channels.
With a mix of CeFi and DeFi features on its platform, Mango Markets envisions a future where financial services would be cheaper and more 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% decline over the past seven days, according to data from CoinGecko.
SEC Nears Decision on Bitcoin ETFs
Meanwhile, the SEC could soon reveal the fate of Bitcoin ETFs. Recent reports indicate that after the SEC's discussions with major exchanges such as the New York Stock Exchange (NYSE) and Nasdaq, it could reveal its results before January 10.
Analysts and ETF issuers express optimism and anticipate a favorable decision after witnessing the SEC's engagement with key industry players.
This contrasts with Matrixport prediction of a possible denial until the second quarter of 2024.
At the time of writing this, BTC is trading at $44,000 with an increase in value of 3.7% in the last seven days.
At the same time, market participants dealing with cryptocurrencies are focusing on the SEC: they await the approval of ETFs that could be a breakthrough in terms of how Bitcoin (btc) can make further inroads into the traditional financial space.
