Moody’s called measures against the organizer of the attack on Mango Markets a boon for DeFi


The pursuit by US regulators of the attacker on the Mango Markets protocol, Abraham Eisenberg, will have a positive impact on the DeFi sector. This conclusion was made by the rating agency Moody’s.

Associate vice president of decentralized finance, Cristiano Ventricelli, said that the measures taken SEC And CFTC enforcement action will create a “safer and more supportive environment” in DeFi.

“The fact that regulators have taken action against market manipulation by an alleged fraudster is a positive thing for the industry as a whole,” the manager emphasized.

In his opinion, these actions will “improve oversight of the DeFi sphere”, which for the most part remained outside the regulatory perimeter. Ventricelli suggests that a more secure environment will help attract institutional players to the industry.

In October 2022, a group led by Abraham Eisenberg attacked Mango Markets and dumped about $116 million worth of digital assets. They took advantage of the opportunity to manipulate the price oracle.

The project community supported the deal with the hackers, under which they returned $69 million, leaving $47 million as a reward.

In December, U.S. Attorneys arrested Eisenberg on charges of commodity and price fraud. In January 2023, the CFTC and the SEC filed claims against the trader.

Recall that in the same month, the developers of Mango Markets announced their readiness to restart the protocol.

Subscribe to CryptoNewsHerald on social networks

Found a mistake in the text? Select it and press CTRL+ENTER

CryptoNewsHerald Newsletters: Keep your finger on the pulse of the bitcoin industry!

Comments (No)

Leave a Reply