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Recent charges against mango-exploiting markets avraham eisenberg will have a positive impact on the decentralized financing space (challenge), according to the moody's rating agency.
In a Jan. 31 memo from Moody's Investor Department, assistant vice president of decentralized finance cristiano ventricelli stated that enforcement actions brought by the two leading u.s. market regulators in january mean that defi is moving toward a “safer and more welcoming environment.”
"the fact that both the dry and the cftc have taken steps against market manipulation by a so-called dishonest trader is a positive factor for the sector as a whole.
Ventricelli stated that these actions could “improve oversight of the DeFi industry” which has for the most part been a difficult area to regulate due to the lack of clarity regarding jurisdiction over open-source protocols.
On Jan. 20, the United States Securities and Exchange Commission (SEC) filed charges against the alleged market manipulator, while the Commodity Futures Trading Commission (CFTC) filed charges against Eisenberg on Jan. 9.
Ventricelli made a similar comment in an article tweeted out by Moody’s on Jan. 26 but it went further in January. 31 note.
A man has been charged with orchestrating an attack on the Mango Markets trading platform to steal $116M of #crypto assets. Moody's cristiano ventricelli's commentary on the movement of the United States and the Foreign Exchange Commission. More on digital finance: https://t.co/pGDxM9u42T@SECGov pic.twitter.com/HLFILPGQOR
— Moody's Investors Service (@MoodysInvSvc) January 25, 2023
The report suggests that the challenge is not "a man's land", referring to a speech delivered in June by the President of the European Central Bank, Christine Lagarde, in front of the European Parliament, where it claimed that European legislation in the field of cryptography, Crypto Asset Marketplaces (MiCA), should be broadened to encompass a decentralised funding framework.
Ventricelli suggested that this safer environment could lead to wider adoption among institutional investors “such as banks,” as well as retail investors.
Related: DeFi sees exploits and exit scam drama in the last week of 2022: Finance Redefined
CFTC’s filing alleged that Eisenberg “engaged in a manipulative and deceptive scheme to artificially inflate the price of swaps offered by Mango Markets.”
The SEC's filing claimed that Eisenberg's shares "left the platform in a loss position" when the price of the value returned to its pre-processing level.
Mango Labs, the company behind Mango Markets, filed its own lawsuit against Eisenberg on Jan. 25, demanding $47 million in damages plus interest over his alleged October exploit.
