Mango Markets (MNGO) Under Scrutiny Before Eisenberg Crypto Fraud Trial

• Mango Markets Faces Trial and Regulatory Inquiries
• Mango Markets and Regulatory Issues
• The Role of Mango Labs and Proposed Solutions

Mango Markets Faces Trial and Regulatory Inquiries

Avi Eisenberg, accused of perpetrating a cryptocurrency fraud, is set to face trial in the near future for allegedly stealing more than $100 million from Mango$0.024 0.47% Markets. Concurrently, the decentralized cryptocurrency exchange (DEX) Mango Markets is dealing with regulatory issues in the United States, which have arisen from the October 2022 theft, as indicated by posts on the project's Discord server.

Mango Markets and Regulatory Issues

The governing body of the DEX, MangoDAO, is now contemplating appointing a representative to handle U.S. regulatory matters on its behalf. Mango Markets was the leading on-chain trading platform for Solana$104 5.03%-based cryptocurrency investors during the previous bull cycle. It is alleged that Eisenberg, a highly assertive trader, used illicit market manipulation techniques to steal millions of dollars from other Mango Markets' customers.

The Securities and Exchange Commission, Commodity Futures Trading Commission, and Department of Justice have all launched lawsuits against the trader, joined by a founding member of Mango Markets. Unlike many Solana platforms that are thriving in the booming cryptocurrency markets, Mango Markets is trying to figure out how to respond to regulators who focussed their attention on the DEX only after it was the victim of the purported crime.

The Role of Mango Labs and Proposed Solutions

The company Mango Labs, the previous legal protector of the DEX, is receding from its role. The CEO of Mango Labs, Dafydd Durairaj, stated on Mango's Discord server last Thursday that his company might be facing a conflict of interest in strict legal terms, which restricts it from advocating for the DEX. This represents a shift from the previous year, when Durairaj assured the DEX's community of Mango Labs' commitment to its protection, even in the face of a potential lawsuit from the SEC.

The community has been informed of the regulatory matters in a Discord post and a solution has been suggested. Adrian Brzeziński, a cryptocurrency developer and long-term contributor to Mango Markets, has proposed that CyberByte, his three-month-old company, could serve as the DEX's representative to regulators.

The proposal assigns CyberByte the authority to hire lawyers for the DEX and engage in confidential and privileged conversations with legal counsel to negotiate agreeable solutions to the U.S. regulatory matters. The final decision on any resolution would rest with the community of token holders, according to posts by Brzeziński. He requested $250,000 to cover the new legal expenses.

As of Friday, the vote on his proposal was heading towards approval with unanimous support from participating token holders. However, some in the Discord community pushed for more specifics on the proposal's formulation. Brzeziński declined to answer the Discord questions prior to the vote's approval and also declined to comment when reached by CoinDesk.

Edited by Jonathan Stoker