Cristiano Ventricelli, Assistant Vice President of Decentralized Finance at Moody’s Investor Service, in a note has said that charges brought by SEC and CFTC against Mango Market exploiter, Avraham Eisenberg, is a positive development and will make DeFi safer and more welcoming.
“Charges n the Mango Markets crypto case signal intent to make Defi a safer environment for retail and institutional investors. It shows that regulators will likely pursue rogue actors who use design flaws or weaknesses in DeFi protocol to steal funds, even if a fully regulated Defi environment is years away,” Ventricelli said in a note on January 25.
On January 20, SEC charged 27-year-old applied game theorist Avraham Eisenberg with engaging in artificially raising the price of Mango Markets token, MNGO, and stealing approximately $116 million worth of crypto assets. At the time SEC filed the charges against Eisenberg, he was under arrest in Puerto Rico and was awaiting transportation to New York City where he was facing criminal and civil charges by the Department of Justice (DoJ) and Commodities Futures Trading Commission (CFTC).
“The fact that both the SEC and CFTC took action against market manipulation by an alleged rogue trader is a credit positive for the industry as a whole,” Ventricelli said in a more detailed note on January 31.