Mango Markets, a decentralized exchange, is gathering additional personnel to withstand the ongoing scrutiny of regulatory authorities in the United States, setting aside a budget of $250,000.
On January 6, the decentralized autonomous organization operating the exchange intends to authorize a budget of $250,000 in USD Coin, according to a proposal on Mango’s governance forum.
The designated funds will be used to employ a representative responsible for responding to inquiries from “certain regulators” regarding Mango Markets.
Cyberbyte, a Polish firm, will obtain a one-year representation agreement for MangoDAO upon its approval. An investor and developer of cryptocurrencies, Adrian Brzeziński also serves as a shareholder of Mango Markets. The representative’s duties encompass procuring legal representation and facilitating “consensual resolutions to regulatory issues in the United States.”
In October, an exploitation of the Mango Markets protocol led to the loss of cryptocurrencies valued at $116 million. Avraham Eisenberg, in charge of the assault, distorted the value of MNGO, the native token of Mango, to secure substantial loans secured by the inflated collateral.
Subsequently, Eisenberg acknowledged his role as the exploiter and asserted that he had implemented a “substantially lucrative trading strategy” through “lawful open market actions.” His detention in Puerto Rico in December, on suspicion of market manipulation and fraud, occurred elsewhere.
The Department of Justice, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) have filed lawsuits against the trader. Also, against Eisenberg, Mango Markets lodged a lawsuit. Since his apprehension, he has been in most U.S. custody while awaiting trial in April. Additionally, U.S. regulators became aware of Mango Markets as a result of the incident:
“Following the Mango Markets exploit in October of 2022, there has been investigations by U.S. regulators (DOJ, SEC, and CFTC) against Eisenberg for his role in the exploit. In addition to those actions, some regulators have made their own inquiries into Mango Markets. These inquiries will be collectively be referred to as the “U.S. regulatory matters.” “
Cyberbyte, as a representative for MangoDAO, shall be reimbursed with an initial fixed fee of $30,000, supplemented by an hourly rate of $500 in USDC.
