Mango Markets Appoints US Regulatory Liaison

Mango Markets, a decentralized exchange, is currently in the process of recruiting more resources to deal with the ongoing attention from regulatory authorities in the United States.

On January 6, the decentralized autonomous organization in charge of the exchange will adopt a budget of two hundred fifty thousand dollars in USD Coin, as stated in a proposal posted on the governance forum of Mango.

An individual who will be responsible for responding to requests from “some regulators” regarding mango markets will be hired with the funds that will be allocated for this purpose.

If the proposal is accepted, MangoDAO will appoint the Polish company Cyberbyte to represent them for one year. A crypto developer named Adrian Brzeziński, who is also a contributor to Mango Markets, is the owner of the company.

Among the representative’s tasks are the assignment of legal counsel and the facilitation of “amicable resolutions to regulatory matters about the United States.” A vulnerability in the Mango Markets protocol was exploited in October, which led to the loss of cryptocurrencies worth a total of 116 million dollars.

Avraham Eisenberg directed the attack. Eisenberg was responsible for manipulating the value of Mango’s native token, MNGO, to collect huge loans against the inflated collateral.

After some time had passed, Eisenberg admitted that he was the one who had exploited the situation, stating that he had engaged in a “highly profitable trading strategy” while engaging in “legal open market actions.”

In December, authorities in Puerto Rico took him into custody and charged him with conspiracy to manipulate the market and fraud. Several regulatory agencies, including the Department of Justice (DOJ), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC), have filed cases against the trader.

Additionally, Mango Markets has asserted legal action against Eisenberg. The United States government has held him in detention since his capture, and he is currently awaiting trial in April. Cyberbyte will earn an initial flat fee payment of $30,000 as a representative for MangoDAO, followed by an hourly rate of $500 in USDC.

“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.‘”

This is in addition to the fact that the episode brought mango markets to the attention of U.S. regulators.