Decentralized exchange Mango Markets is actively responding to ongoing scrutiny from U.S. regulators by initiating new measures.
The decentralized autonomous organization behind the exchange is proposing a $250,000 USD token budget to address inquiries from various regulators about Mango Markets. This proposal, posted on the Mango governance forum on January 6th, aims to allocate funds for hiring a representative to handle these regulatory inquiries.
If approved, MangoDAO plans to engage Cyberbyte, a Polish company owned by Adrian Brzeziński, a contributor to Mango Markets, for a one-year term. Cyberbyte will represent MangoDAO in liaising with regulators, seeking legal counsel, and pursuing resolutions with U.S. regulatory entities.
Mango Markets faced a significant exploit in October, resulting in the loss of $116 million in cryptocurrency. Avraham Eisenberg orchestrated the attack by manipulating the value of Mango's native token, MNGO, to obtain inflated collateral and large loans. Subsequently, Eisenberg was arrested in Puerto Rico last December on charges of market manipulation and fraud.
Facing legal action from the SEC, CFTC, and DOJ, Eisenberg remains in U.S. custody pending trial. Mango Markets itself also filed a lawsuit against Eisenberg. The incident brought Mango Markets under the scrutiny of U.S. regulators, triggering investigations by multiple agencies such as the DOJ, SEC, and CFTC, collectively termed as the "U.S. Investigations."
As a representative for MangoDAO, Cyberbyte will receive an initial fixed fee of $30,000, followed by compensation of $500 per hour in USDC for their services. This move signifies Mango Markets' commitment to addressing regulatory concerns and establishing a transparent and compliant framework.
