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Mango Markets, a decentralized exchange (DEX) built on Solana, is currently considering a settlement proposal with the United States Securities and Exchange Commission (SEC) amid allegations of securities law violations. The Mango DAO, which oversees the DEX, initiated a vote on August 19 to decide on the proposed settlement, which includes a series of measures aimed at resolving the ongoing legal dispute.
The proposed settlement involves several significant steps, including paying fines, destroying its native MNGO tokens, and requesting delisting from trading platforms. As of the time of writing, the proposal has already garnered substantial support, with over 106 million votes cast in favor and more than two days remaining in the voting period.
Mango Markets’ Struggles
Mango Markets has faced significant challenges since October 2022, when it was exploited by trader Avraham Eisenberg, who manipulated the protocol and siphoned off $110 million. Eisenberg was subsequently arrested in Puerto Rico in December 2022 and faced trial for fraud and manipulation earlier this year.
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In April this year, the trial concluded with a guilty verdict.
Securities Law Violations
In response to these investigations, the SEC has accused Mango DAO, along with Mango Labs and Blockworks Foundation, of violating multiple securities regulations. The settlement proposal put forth by the DAO includes paying a $223,228 civil penalty from its treasury, which currently holds nearly $2 million in USD Coin (USDC) and other assets.
Importantly, the proposal stipulates that Mango DAO would neither admit nor deny any wrongdoing as part of the settlement.
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Additionally, the proposal requires Mango DAO to cease all offers, sales, and resales of MNGO tokens within the United States, destroy any tokens it holds, and request their removal from all exchanges. The DAO hopes this approach will help it avoid protracted litigation with the SEC while bringing the matter to a close without a formal admission of guilt.
The SEC has yet to accept the proposed settlement, but the vote within the Mango DAO reflects a strong desire to move forward and resolve the regulatory challenges it faces.
MNGO Market Movement
Meanwhile, MNGO token prices saw a modest gain of 5.7% following the announcement, reaching $0.015. However, the token remains 96% below its September 2021 all-time high of nearly $0.50.
MNGO currently boasts a market cap of $15.4 million, sitting at 835th spot in the list of largest cryptocurrencies by market cap.
