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News

Mango Markets DAO Voted to Settlement with SEC $223,228 Fine

August 21, 2024 - Around 2 mins mins to read

Key Points:

  • Mango Markets DAO has approved a settlement proposal with the SEC, including a $223,228 fine and the destruction of its MNGO governance tokens.
  • The settlement does not require Mango Markets to admit or deny wrongdoing despite the SEC not formally charging the platform.
According to Bloomberg, the decentralized organization governing the DeFi platform Mango Markets, the Mango Markets DAO, has voted to accept a proposed settlement with the US Securities and Exchange Commission.
Mango Markets DAO Voted to Settlement with SEC $223,228 Fine

Read more: Mango Markets Hacker Faces 20 Years In Prison 

Mango Markets DAO Votes for Settlement with the SEC and Token Burns

Though the SEC has not charged the platform with any wrongdoing, members of the Mango Markets DAO are taking a preemptive measure concerning their regulatory status.

The proposal has critical actions it has obtained the required votes within the Mango Markets DAO community, entailing a fine to the tune of $223,228, destruction of all MNGO governance tokens, and delisting from all cryptocurrency exchanges. Most importantly, the settlement does not require Mango Markets to admit or deny any violations of securities laws.

The move comes against the backdrop of increased regulatory scrutiny on the platform. In January 2023, Avraham Eisenberg, a trader, was convicted of fraud due to his plot to steal $110 million by taking advantage of Mango Markets’ rules in a milestone case of cryptocurrency manipulation. Afterwards, the SEC charged Eisenberg with manipulating the MNGO token, which was branded as security.

Future Governance of Mango in Question After MNGO Token Removal

The decision by the Mango Markets DAO to burn MNGO tokens and halt sales in the US could have implications for the future of the platform. As MNGO is the primary governance token, it is critical that its removal is a consideration in the operation of the decentralized exchange moving forward.

Although the SEC has yet to sign off on the settlement offer, assuming it gets approved, this agreement could be the standard way in which decentralized platforms are able to intelligently sail through regulatory hurdles.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Avraham Eisenberg

DAO

Mango

Mango Markets

Mango Markets DAO

mngo

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.