- Mango Labs, the operator of decentralized exchange Mango Markets, has filed a lawsuit against John Kramer and Max Schneider, core contributors to Mango DAO. The lawsuit alleges that the defendants embezzled over $10 million from the Mango Markets ecosystem through a scheme involving the manipulation of MNGO tokens. According to Mango Labs, Kramer and Schneider purchased MNGO tokens from FTX, artificially inflated their price through wash trading, and then sold them to Mango DAO at the inflated price. This resulted in Mango DAO acquiring MNGO tokens at an overvalued price, causing a loss of over $10 million to the ecosystem. Mango Labs alleges that the defendants breached their fiduciary duties as core contributors to Mango DAO and engaged in self-dealing and undisclosed conflicts of interest. The lawsuit seeks damages, disgorgement of profits, and an injunction to prevent the defendants from further engaging in such conduct. This news comes after a turbulent period for Mango Markets, which was the target of a massive hack in October 2022. The hack resulted in the theft of over $110 million worth of cryptocurrency. Mango Labs has since taken steps to enhance the security of the Mango Markets platform and is working to recover the stolen funds. The ongoing legal proceedings will shed light on the allegations of embezzlement and shed light on the governance and oversight mechanisms within Mango DAO. The outcome of the lawsuit could have significant implications for the future of Mango Markets and the broader DeFi ecosystem.