The SEC claims that Mango markets raised over $70M through unregistered sales, violating federal securities laws.
The United States Securities and Exchange Commission (SEC) announced today that it has reached a settlement with Mango DAO, Blockworks Foundation, and Mango Labs LLC regarding their involvement in the unregistered sale of cryptocurrency assets on the Mango Markets platform.
US SEC Settles With Mango Markets
The SEC is targeting the sale of governance tokens issued by MNGO organizations with its enforcement action. The SEC contends that these organizations have failed to comply with federal securities laws, thereby depriving investors of key legal safeguards.
The Securities and Exchange Commission (SEC) reports that Mango DAO, a decentralized autonomous organization and Blockworks Foundation, a Panamanian business have successfully raised more than seventy million dollars through the sale of MNGO tokens through unregistered offers and sales as of August 2021.
The tokens, marketed as governance tokens of the Mango Markets platform attracted hundreds of investors from all over the world, including those from the United States.
The Securities and Exchange Commission (SEC) filed a complaint arguing that the entities failed to provide investors with the disclosures and protections mandated by the SEC.
The marketing of MNGO tokens as governance tokens aimed to empower holders to make decisions within the Mango Markets ecosystem.
The Securities and Exchange Commission (SEC) asserts that the sale of the tokens, being securities, required registration under the Securities Act of 1933.
