Moody’s says measures against Mango Markets attacker are a boon for DeFi

Regulatory action by U.S. authorities against the Mango Markets attacker, Abraham Eisenberg, is expected to have a positive impact on the DeFi sector, Moody’s has said.

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 comments on the US Securities and Exchange Commission’s move. 👉 More on digital finance: https://t.co/pGDxM9u42T@SECGov pic.twitter.com/HLFILPGQOR

— Moody’s Investors Service (@MoodysInvSvc) January 25, 2023

Cristiano Ventricelli, the deputy head of the company’s decentralized finance division, said that the enforcement actions by the SEC and CFTC will create a safer and more favorable environment in DeFi.

“The fact that regulators have taken action against market manipulation by the alleged perpetrator is a positive moment for the industry as a whole,” the executive said.

In his view, these actions “will improve oversight of the DeFi space,” which has largely remained outside the regulatory perimeter. Ventricelli suggests that a safer environment will attract institutional players to the industry.

In October 2022, a group led by Abraham Eisenberg attacked Mango Markets and drained digital assets worth about $116 million. They exploited an opportunity to manipulate the price oracle.

The project community supported the deal with the hackers, under which they returned $69 million, leaving $47 million as a reward.

In December, the U.S. prosecutors arrested Eisenberg on charges of fraud involving commodities and price manipulation. In January 2023, the CFTC and SEC brought charges against the trader.

In the same month, Mango Markets developers said they were ready to restart the protocol.