A year after Avi Eisenberg allegedly perpetrated the $100 million market manipulation exploit, Mango Markets – a blockchain-based trading protocol – is uneasily shouldering huge legal costs. Despite having a treasury worth around $89 million that is mostly comprised of MNGO tokens, most of it cannot be liquidated easily and presents an issue when considering the need for legal expenses to be covered quickly. This has sparked inner disputes within Mango DAO.
Initially, a proposal for an extra $2 million of compound assets to be given to Mango Labs was met with controversy, due to questions raised regarding time-honoured practices of fiscal responsibility. Nonetheless, Mango Labs founder Daffy Durairaj submitted the renewed request for additional funds, instead of exclusively digging into their treasury’s $15.3 million stash of fiat-backed stablecoins.
The multi-faceted legal challenges associated with the conundrum include federal criminal and the regulatory cases proceeding alongside the civil suit levelled at Eisenberg by Mango Labs. It could ultimately lead to the development of profoundly progressive governance structures for decentralized finance – which everybody in the crypto community closely watches.
