Charges Against Mango Markets will Have a Positive impact on DeFi-Moody’s
2023.02.02 03:00
Charges Against Mango Markets will Have a Positive impact on DeFi-Moody’s
By Tiffany Smith
Budrigannews.com – According to Moody’s, the decentralized finance (DeFi) industry will benefit from the recent allegations leveled against Mango Markets exploiter Avraham Eisenberg.
Cristiano Ventricelli, Moody’s AVP of decentralized finance, stated in a note dated January 31 that enforcement actions taken in January by the two leading U.S. market regulators indicate that DeFi is moving toward a “safer and more welcoming environment.”
“It is a credit to the industry as a whole that the SEC and CFTC took action against market manipulation by an alleged rogue trader.
According to Ventricelli, these actions could “improve oversight of the DeFi industry,” which has been difficult to regulate due to ambiguity regarding open-source protocol jurisdiction.
The Commodity Futures Trading Commission (CFTC) brought charges against Eisenberg on January 9, while the United States Securities and Exchange Commission (SEC) brought charges against the alleged market manipulator on January 20.
According to a tweet from Moody’s Twitter page, Ventricelli had made a similar statement on January 26, but the note from January 31 went into greater detail.
A man has been accused of planning an attack on the trading platform of Mango Markets to steal $116 million in crypto assets. Cristiano Ventricelli of Moody offers his thoughts on the move made by the US Securities and Exchange Commission.
In reference to Christine Lagarde’s June 2022 speech to the European Parliament in which she argued that Europe’s crypto legislation, Markets in Crypto-Assets (MiCA), should be “expanded” to include a framework for decentralized finance, the report suggested that DeFi is “no longer a no man’s land.”
Ventricelli suggested that institutional investors “like banks” and retail investors might adopt this safer environment more widely.
“Engaged in a manipulative and deceptive scheme to artificially inflate the price of swaps offered by Mango Markets,” according to the CFTC’s filing.
David Hirsch, the head of the SEC’s crypto assets and cyber unit, said in the filing that Eisenberg’s actions “left the platform at a deficit” when the security price went back to where it was before the manipulation.
On January 25, the company behind Mango Markets, Mango Labs, filed its own lawsuit against Eisenberg, claiming that the platform had been exploited in October 2022, and that it owed $47 million in damages and interest.
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