Under fire from the SEC, Mango Markets is exploring a path to peace.
In the latest news in cryptocurrency, Mango Markets is considering settling with the United States Securities and Exchange Commission (SEC) over allegations of violating U.S. securities laws.
On August 19, the Solana-based decentralized exchange (DEX) managed by the Mango DAO began voting on an “SEC Settlement Offer Proposal.”
The proposal includes paying fines, destroying MNGO tokens, and requesting delisting from trading platforms. As of now, with over two days of voting remaining, the proposal has reached a quorum with 106,717,813 votes, all in favor.
The DEX has faced challenges since October 2022, when Avraham Eisenberg exploited the protocol, resulting in a $110 million loss. His actions led to a criminal trial in April, where he was found guilty of fraud and manipulation.
Following the incident, the SEC, Department of Justice, and Commodity Futures Trading Commission launched investigations into the platform. The SEC alleges that Mango DAO, Mango Labs, and Blockworks Foundation violated various securities regulations.
The proposed settlement suggests that Mango DAO will neither admit nor deny the SEC’s allegations while paying a $223,228 penalty from its treasury, which currently holds nearly $2 million in USD Coin and other assets. Additionally, Mango DAO would halt all offers, sales, and resales of MNGO tokens in the U.S., destroy any remaining tokens, and request their removal from all exchanges.
This proposal seeks to avoid litigation and resolve the SEC’s claims without an admission of wrongdoing. However, it has not yet been accepted by the SEC.
According to cryptocurrency news, in early August, Eisenberg filed a motion for judgment of acquittal, arguing that his actions on Mango Markets were legal trading activities, not fraud or manipulation.
Reports indicate that Mango Market’s $70 million token sale in 2021 excluded U.S. investors to avoid regulatory scrutiny. Despite the recent 5.3% increase in MNGO token prices, reaching $0.015, they are still 97% below their all-time high of nearly $0.50 in September 2021.
