Mango Markets Shuts Down Following SEC Settlement... And Hack

Mango Markets is ceasing operations following a settlement with the Securities and Exchange Commission (SEC) and its $117 million exploit in 2022, the DeFi trading platform has announced.

The shutdown process will commence on 13 January 2025 at 8PM UTC. "Mango Markets will be shutting down," Mango Markets tweeted. "It is time for users to close their positions Mango v4 & Boost are winding down. Most borrowing on Mango will be economically unviable going forward."

The SEC alleged that Mango raised $70 million in 2021 through unregistered MNGO token sales, violating securities laws. Mango’s DAO agreed to settle by paying $700,000 in penalties, burning the tokens, and removing them from exchanges.

Crypto trader Avraham “Avi” Eisenberg was also alledged to have violated commodities law by using a "manipulative or deceptive device" to manipulate the price of the MNGO token through swap.

Over $100 million worth of crypto was taken from Mango Markets due to an exploit. Eisenberg was ultimately arrested and used by the CFTC for market manipulation.

CTFC Sues Avraham Eisenberg For Mango Markets Exploit

Avraham Eisenberg has been sued by the CTFC just weeks after his arrest for market manipulation on Mango Markets

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Eisenberg claims he was just part of a group that "operated a highly profitable trading strategy" and said he would return some of the funds to Mango, staqting in tweets that his actions were legal.

The CTFC said Eisenberg admitted to "his scheme" in a Discord server ahead of the exploit, as well as social media posts after the funds were exploited.

"Contrary to his purported belief that his actions were legal, in fact, they constituted blatant manipulation of spot prices and swaps," the CFTC said.

The shutdown of Mango Markets highlights broader challenges within the DeFi sector while emphasizing the resilience and adaptability of the industry.