Mango Markets DAO is considering a settlement with the SEC over alleged U.S. securities law violations. The proposal includes paying fines, destroying MNGO tokens, and delisting from trading platforms.
Mango Markets is contemplating the submission of a settlement offer to the United States Securities and Exchange Commission (SEC) in response to allegations that it violated US securities laws.
Voting for a “SEC Settlement Offer Proposal” was initiated by the DAO that oversees the Solana-based decentralised exchange (DEX) on August 19.
The Mango DAO has proposed a settlement that entails the payment of penalties, the destruction of its MNGO tokens, and the pursuit of delisting from trading platforms.
At the time of writing, with over two days of voting time remaining, a quorum had been achieved with 106,717,813 votes, all of which were in favour of the affirmative.
The Solana-based DEX has been experiencing financial difficulties since October 2022, when trader Avraham Eisenberg exploited the protocol to withdraw $110 million. As a result, he was convicted guilty of fraud and manipulation during his criminal trial in April.
The SEC, Department of Justice, and Commodity and Futures Trading Commission, in response to the theft, initiated an investigation into the platform. Mango DAO, Mango Labs, and Blockworks Foundation are accused by the Securities and Exchange Commission (SEC) of violating numerous securities regulations.
In the proposed settlement, Mango DAO is required to pay a $223,228 civic penalty from the DAO Treasury, which presently holds nearly $2 million in USD Coin and other assets, and to neither admit nor deny wrongdoing.
“As part of the settlement offer, the DAO would not be admitting or denying the SEC’s allegations.”
Furthermore, the Mango DAO would discontinue all offers, sales, and resales of MNGO tokens in the United States, eliminate any tokens in its possession, and request their delisting from all exchanges.
The objective of the proposal is to resolve the SEC’s allegations and prevent litigation without acknowledging or denying wrongdoing. Nevertheless, the securities regulator has not yet approved it.
Eisenberg filed a motion for judgement of acquittal in early August, asserting that his actions on Mango Markets were legal trading and not fraud or market manipulation.
According to reports from the time, Mango Market’s $70 million token sale in 2021 was not accessible to US investors in order to circumvent regulatory repercussions.
At the time of writing, the price of MNGO tokens had increased by 5.3% on the day, reaching $0.015. Nevertheless, they are still 97% below their all-time high of roughly $0.50 in September 2021.
