Mango Markets, a decentralized platform, is responding to U.S. regulatory authorities by allocating $250,000 in USD Coin (USDC). The aim is to hire a person who can help address concerns raised by regulators. This decision comes after facing setbacks such as a hacking incident and ongoing legal proceedings.
The hack, which occurred over a year ago, resulted in the loss of $116 million in crypto assets. The perpetrator, Avraham Eisenberg, was arrested and charged with market manipulation. This led to the parent company of Mango Markets, Mango Labs, initiating a lawsuit against Eisenberg.
Allocating Resources for a Solution
Mango Markets’ decentralized autonomous organization (DAO) has approved a budget of $250,000 in USDC to address regulatory inquiries. The company plans to hire a representative, Adrian Brzeziński, for a one-year term to engage legal counsel and resolve any regulatory issues.
The Aftermath of the Hack
Eisenberg’s actions led to his arrest in Puerto Rico and charges of market manipulation. He is accused of draining assets from Mango Markets by artificially inflating the price of their native token (MNGO). This has resulted in various regulatory bodies, such as the FBI and CFTC, seeking civil penalties and an injunctive order against him.
The parent company of Mango Markets has also filed a lawsuit against Eisenberg in the Southern District of New York U.S. District Court. While initially seeking a refund of $67 million, Mango Labs is now pursuing the remainder of the amount through legal channels.
Mango Markets envisions a future where financial services are more accessible and affordable for cryptocurrency users through their platform’s CeFi and DeFi features, such as margin trading and lending. As of the writing of this article, their native token (MNGO) is trading at $0.019, a 20% decline in the last 7 days according to CoinGecko.
SEC’s Decision on Bitcoin ETFs
The SEC is expected to reveal its decision on spot Bitcoin ETFs by Jan. 10 after discussions with major exchanges like the New York Stock Exchange and Nasdaq. Analysts and ETF issuers are optimistic about a favorable decision, while others anticipate a possible denial until the second quarter of 2024.
At the time of writing, BTC is trading at $44,000 with a 3.7% increase in value over the past seven days. Market participants in the cryptocurrency space are eagerly awaiting the SEC’s decision as it could potentially pave the way for Bitcoin to enter traditional finance.
