ShapeShift responds to Sen. Warren’s comments to ‘set the record straight’

February 19, 2023 Coin Telegraph

AML

Switzerland-based crypto platform claimed Warren made “mistakes” in comments at a recent senate hearing, and encouraged her to “constructively engage” with its community.

Non-custodial crypto platform ShapeShift refuted United States Senator Elizabeth Warren’s claims of "illicit financing,” suggesting that she used the platform as a scapegoat to “push” her latest crypto bill, according to a recent statement.

ShapeShift stated in a tweet on Feb. 19 that Warren made “mistakes” in her “analysis” of the platform, at a recent senate banking committee hearing entitled “Crypto Crash: Why Financial System Safeguards are Needed for Digital Assets,” on Feb. 14.

On Valentine's Day, @SenWarren attempted to use ShapeShift as an example to push her latest crypto bill.

Unfortunately, there were mistakes in the Senator's analysis, and we'd like to take the opportunity to set the record straight
— ShapeShift (@ShapeShift) February 18, 2023

In a follow-up tweet, ShapeShift denied Warren’s comments regarding its involvement with “illicit financing,” stating it “never handles user funds,” and has no ability to “facilitate this.”

This comes after Warren suggested at the senate hearing that ShapeShift had ulterior motives for restructuring itself as a DeFi platform in July 2021.

Warren suggested that the restructure was to encourage people to “launder” money on the platform.

Shapeshift also clarified that it is “not an exchange,” elaborating that it is an open-source crypto dashboard that “connects users” to different protocols and platforms.

It added that it cares about the “same things” as Warren, citing "user safety" and "access to innovation" as a mutual focus.

ShapeShift encouraged Warren and others to “constructively engage” in the topic of financial freedom and innovation with its community, sharing a link to its discussion forum.

This comes only a day after Erik Vorhees, CEO of ShapeShift, took to his personal Twitter on Feb. 18, stating that he is looking forward to Warren “submitting a proposal” to the Shapeshift DAO governance process, in response to her criticism of the platform.

Warren has been a vocal crypto sceptic in recent times, having made comments in an interview on Jan. 25, suggesting that the United States Securities and Exchange Commission (SEC) should “double down” on its crypto enforcement efforts, as the crypto industry is scared for what’s to come next.

She claimed that the previous SEC administration “essentially gave the green light” to open up a cryptocurrency market “full of junk tokens, unregistered securities, rug pulls, Ponzi schemes, pump and dumps, money laundering and sanctions evasions.”

Cointelegraph reached out to ShapeShift for comment but did not receive a response in time of publication.

Mango Markets exploiter seeks to keep disputed funds paid as ‘bug bounty’

February 16, 2023 Coin Telegraph

avi eisen

Attorneys representing Avraham Eisenberg argued he had already settled his dispute with Mango DAO and shouldn't have to pay back any more funds.

The alleged exploiter of the decentralized finance protocol Mango Markets, Avraham Eisenberg, is seeking to keep his share of crypto gained from his so-called “highly profitable trading strategy.”

On Feb. 15, attorneys for Eisenberg filed a motion in a New York District Court objecting to a lawsuit from Mango that asks for $47 million in damages plus interest starting from the time of Eisenberg’s October attack, whidrained around $117 million from the protocol.

The lawyers argued that Eisenberg shouldn’t need to pay back any more funds to the DeFi platform due to a settlement agreement that he reached with Mango DAO, arguing that the “matter was settled.”

*Eisenberg’s (right) last public appearance was on a podcast in late October, just weeks after his alleged exploit of the platform. Source:* *YouTube*

A governance proposal was passed by the Mango DAO following the draining of its treasury that saw Eisenberg keep a portion — $47 million — of the pilfered funds as a bug bounty along with a stipulation that Mango wouldn’t pursue legal action.

“Eisenberg transferred funds totaling approximately $67 million to Mango Markets,” the attorneys wrote, adding:

“Weeks later, eligible Mango Markets’ members received reimbursement from the Mango Markets treasury. At that point, all involved considered this matter closed and Mr. Eisenberg heard nothing further from Mango Markets.”

Mango, however, said in its suit that the settlement should be voided as it was made “under duress” and alleged Eisenberg “was not engaged in lawful bargaining.”

Eisenberg’s attorneys rebuffed these claims, saying the “improper three-month delay” for Mango filing its suit “undermines any alleged irreparable harm.” The lawsuit, they say, aimto “take advantage” of Eisenberg’s December arrest in Puerto Rico by United States authorities.

Eisenberg was charged by the Federal Bureau of Investigation with commodities fraud and manipulation.

He also faces a lawsuit from the U.S. Commodity Futures Trading Commission that alleges market manipulation and a suit from the Securities and Exchange Commission for violating securities laws relating to anti-fraud and market manipulation.

Eisenberg has previously stated his trades on Mango were “legal open market actions, using the protocol as designed,” and called his purported attack a “highly profitable trading strategy.”