Decentralized trade Mango Markets has allocated $250,000 worth of USD Coin (USDC) to its course in response to regulatory organizations in the United States scrutinizing it.
The DAO, or decentralized autonomous organization, hired an intermediary to help shepherd the project through its regulatory challenges due to recent setbacks, including a hack and continuing legal procedures.
The Mango Market DAO has approved a $250,000 USD Coin (USDC) budget in response to regulatory questions. The goal of this allocation, which is scheduled for approval on January 6, is to appoint a representative to help resolve issues brought up by US regulators.
If authorized, Adrian Brzeziński, a contributor to Mango Markets through his Polish business Cyberbyte, will represent MangoDAO for a year. Engaging legal advice and pursuing regulatory matter remedies are among the responsibilities.
The Hack and its Aftermath
Mango Markets had a significant hack more than a year ago, which resulted in the loss of $116 million in cryptocurrency holdings. Avraham Eisenberg led the hack, which involved manipulating the protocol’s treasury through an oracle.
Eisenberg, claiming to have used an extremely effective trading strategy, artificially increased the value of Mango’s native token (MNGO) in order to get large loans on exaggerated collateral.
But as a result of his acts, he was arrested in Puerto Rico in December 2022 and charged with fraud and market manipulation. Regulators, including the SEC and CFTC, accused him of running a fraudulent scheme that cost Mango Markets money after the incident.
Among Eisenberg’s purported activities was withdrawing funds from Mango Markets following a fictitious increase in the token’s value. The FBI and CFTC, among other regulatory agencies, collaborated in pursuing injunctive relief and civil penalties.
Concurrently, the parent company of Mango Markets filed a complaint in the U.S. District Court for the Southern District of New York against Eisenberg.
Eisenberg had first consented to return $67 million, but Mango Labs is taking legal action to recover the remaining sum. Mango Markets sees a future where margin trading, lending, and perpetual futures would make financial services more affordable and available to cryptocurrency users.
It does this by combining DeFi and CeFi capabilities on its platform. According to statistics from CoinGecko, MNGO is currently trading at $0.019, representing a 20% decline over the previous seven days.
SEC Nears Decision on Bitcoin ETFs
The SEC may soon make known the fate of spot Bitcoin ETFs. According to recent sources, the SEC may make its findings public by January 10 following conversations with significant exchanges like the Nasdaq and the New York Stock Exchange (NYSE).
ETF issuers and analysts are upbeat, expecting a positive ruling following the SEC’s interactions with significant sector participants. In comparison, Matrixport forecasted that a denial might only occur in the second quarter of 2024.
Bitcoin has increased in value by 3.7% during the past seven days and is currently trading at $44,000. Market players in the cryptocurrency field are also keeping a close eye on the SEC, anticipating the approval of exchange-traded funds (ETFs) that might be a game-changer for Bitcoin’s (BTC) ability to penetrate the traditional finance sector.
