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According to Moody's, a credit rating firm, the recent complaint against Avraham Eisenberg, the market explorer of Qingmang sales, will have a positive impact on the fragmented financial sector (Defi).
Cristiano Ventricelli, assistant vice president of decentralized credit at Moody's Investor Service Center (Moody's Investor Service), pointed out in a January 31 report that the enforcement actions taken by two key US market management platforms in January represented that Defi had moved towards a "safer and friendlier natural environment."
The fact that both the Securities and Exchange Commission and the Commodity Futures Trading Federation have acted against the industry manipulation of suspected rogue traders is an active personal credit for the whole enterprise.
Ventricelli shows that this kind of behavior can "improve the regulation of the Defi industry", which is partly difficult to regulate because of the lack of picture quality over the geographical jurisdiction of open source protocols.
On January 20th, the Securities and Exchange Commission (SEC) filed a lawsuit against the alleged industry manipulator, while the Commodity Futures Trading Federation (CFTC) filed a lawsuit against Eisenberg on January 9.
Wenpi Reschelli posted a similar message in a post posted by Moody's on Twitter on Jan. 26, but he discussed it in more detail in his report on Jan. 31.
The report suggested that Defi was "no longer a no man's land in northern Tibet", referring to a speech by Nazar, ECB president, to the European Parliament in June, in which he argued that European data encryption laws-the encrypted asset sales market (MICA)-should be extended to include a framework for a decentralized financial sector.
Ventricelli suggests that such a safer natural environment could lead to more comprehensive choices by investors, such as financial institutions, and their retail investors.
According to the CFTC filing, Eisenberg "participated in a manipulative and fraudulent scheme that artificially inflated the swap price offered by Mango Markets."
When securities prices returned to pre-manipulation levels, Eisenberg's actions "put the service platform at a loss," the SEC filing said.
The Qingmang laboratory behind Mango Markets filed a lawsuit against Eisenberg on January 25th, stipulating that he paid $47 million in damages interest on suspicion of personal conduct in October.