Key Points:
Read more: Mango Markets Hacker Faces 20 Years In Prison
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.
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. |
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