The past few spree of regulatory actions in the Decentralized Finance ecological system got positive reactions from the credit rating company Moody. In a recent development, the Commodities Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC) took legal action against the Mango Markets exploiter for allegedly manipulating the market to steal funds from the platform.
The credit rating company Moody came forward and commended the regulators’ actions, saying it would result in a safer atmosphere for the decentralized finance (DeFi) community.
Moody’s VP Believes Decentralized Finance is No Longer Unregulated
Cristiano Ventricelli, the VP of Moody’s Investors Service, wrote a note commending the SEC and CFTC for making the Decentralized Finance space “more transparent.” In detail, it indicated that the enforcement actions against Avraham Eisenberg, the Mango Markets exploiter, signifies that Decentralized Finance is becoming a “safer environment.”
The Moody executive thinks that both chief United States regulatory authorities would likely carry out more actions against bad players in Decentralized Finance, gradually leading to a safer ecosystem.
In the earliest tweet, Cristiano Ventricelli made similar comments. He noted the regulator’s actions could make better control of the Decentralized Finance sector. Reports by a report, regulation in the Decentralized Finance space has proven difficult for regulatory authorities owing to uncertainty regarding the authority to supervise open-source cryptocurrency protocols.
Furthermore, the complexity of Decentralized Finance and cryptocurrency protocols has made it “almost impossible” for law enforcement agencies to comprehend how to oversee these sectors.
For example, the SEC and the CFTC had previously disagreed over jurisdictional oversight of cryptocurrency assets. Nonetheless, recently, the two regulatory authorities have been working to make better the industry’s supervision.
For instance, on January 20 and 9, the United States Securities and Exchange Commission and The CFTC filed charges against the Mango Markets exploit perpetrator, Eisenberg, for manipulating the Mango Markets.
In his recent tweet, Ventricelli suggested that a safer Decentralized Finance environment could attract more institutional investors like banks and retail investors.
Mango Markets Hacker Facing Numerous Lawsuits From SEC, CFTC, And Mango Labs
In terms of regulatory actions, in the lawsuit filing, the CFTC charged Eisenberg for orchestrating a manipulative scheme to falsely inflate Mango Markets’ swaps prices. In the meantime, the SEC’s filing alleged that Eisenberg negatively impacted the Mango Market platform.
Mango Labs, the project behind Mango Markets, likewise filed a lawsuit against Eisenberg on January 25. The company demanded that Eisenberg compensates them with $47 Million in damages, including interest for his activities on the platform in October 2022.
A year ago, Mango Markets experienced an attack on its swaps offerings that left the platform with a loss of $116 Million. The hacker previously returned $67 Million of the stolen funds but kept $47 Million. Mango Labs now demands the remaining $47 Million plus interest over the damages.
Bitcoin (BTC) trades with a decline of 027 percent on the chart l BTCUSDT on Tradingview.com
Reports by reports, the Mango Markets DAO community gave a 98 percent vote, equivalent to 291 Million crypto tokens, in favor of the previous deal where the hacker gets to keep the balance of the stolen funds.
Additionally, the community votes indicated that Mango Markets should fall charges against the hacker, but the company is going ahead with the lawsuit.
Featured image from Pixabay and chart from Tradingview.com
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