Mango Markets Announces Closure, Urges Users to Close Positions

Hackers have significantly disrupted numerous firms in recent years. While some companies have managed to recover, others have exited the market entirely, and some are planning to follow suit

In a recent announcement, Mango Markets revealed it would be shutting down operations following a devastating hack that resulted in losses amounting to hundreds of millions of dollars.

In an X post dated January 11, 2025, Mango Markets stated, “Mango Markets will be shutting down. It is time for users to close their positions.” The post further noted that “Mango v4 & Boost are winding down. Most borrowing on Mango will be economically unviable going forward.”

Ahead of its closure, Mango v4 will begin implementing changes to its lending criteria. The target lending ratio will gradually decrease from 50% of deposits to just 0.1% as part of the updated protocol parameters

Additionally, the platform will impose steep interest rate hikes on all major cryptocurrencies, including SOL, USDC, USDT, ETH, MSOL, mangoSOL, and INF.

Mango Markets also faced regulatory challenges. The U.S. The Securities and Exchange Commission (SEC) accused the platform of violating securities laws in 2021 by selling unregistered MNGO tokens, raising $70 million

To settle the allegations, Mango’s Decentralized Autonomous Organization (DAO) agreed to burn the tokens, delist them from exchanges, and pay $700,000 in penalties.

The combined impact of the massive hack and legal troubles has forced Mango Markets to wind down its operations, marking the end of its journey in the crypto market.

The Mango Market hack explained

According to available data, Mango Markets was exploited in 2022, a year widely regarded as one of the most catastrophic for the cryptocurrency industry. During the same period, major players like FTX and Alameda Research filed for bankruptcy, sending shockwaves across the market

The exploitation of Mango Markets added to the turmoil, highlighting the vulnerabilities and challenges faced by the crypto ecosystem during that turbulent year.

Crypto trader Avraham “Avi” Eisenberg was convicted of wire fraud, commodities manipulation, and commodities fraud in connection with his $110 million Mango Markets scam

As part of his plan, he traded with himself to inflate the value of Mango Markets’ governance token, MNGO, intending not to pay them back, he borrowed about $110 million worth of crypto from Mango Markets users using the inflated value of MNGO as collateral.

The traders’ actions amounted to traditional fraud and market manipulation; the most recent postponement of Eisenberg’s sentencing has been set for April 10, 2025.

Crypto market price updates

It is crucial to note that the crypto market capitalization seems to be approaching red, when writing it was at $3.17 trillion with a massive decline of 3.65 percent

Yet in the past 24 hours, the trading volume of the market has reached $102.42 with an addition of 46 percent. As per market experts, the spike in the volume seems to be fueled by the constant pressure from the bears in the market

Until publishing, Bitcoin, the most talked about crypto, was trading below the 20-day EMA at $91,431 with a decline of 2.94 percent in the past 24 hours and fell around 7.58 percent in the weekly frame