Mango Markets is looking to settle with the US Securities and Exchange Commission [SEC] over allegations of breaching securities laws.
As far as the details are concerned, the SEC has claimed that the governing body that manages Mango Markets — Mango DAO — sold unregistered securities. The developer of Mango Markets — Mango Labs — is parallelly facing charges that it assumed the role of an unlicensed broker.
Mango DAO has now introduced a "SEC settlement offer proposal.” The same has been put up for community members to vote.
According to the specifics chalked out, a hefty fine will be paid by the entity. Alongside, the governing entity will destroy its MNGO token holdings. It will additionally seek the token’s delisting from other trading platforms.
“This proposal, if approved, will authorize the DAO Representative to propose a settlement offer to the SEC that would include the payment of a civil penalty in the amount of $223,228, to be paid from the DAO Treasury to the SEC.”
The regulatory agency has not yet green-flagged the proposal. However, everyone who has voted is in favor of the aforementioned deal. If the SEC agrees to it, the future of Mango Markets will be on the fence.
Here it is worth recalling that trader Avraham Eisenberg manipulated the protocol back in 2022 and drained over $110 million. He was eventually found guilty of fraud and manipulation.
On the heels of this incident, the SEC, DOJ, and CFTC started investigating the platform and alleged that Mango DAO, Mango Labs, and Blockworks Foundation — another related entity — violated various securities regulations. Now,
“As part of the settlement offer, the DAO would not be admitting or denying the SEC’s allegations.”
MNGO was trading at $0.01545 at press time, up 4.8% over the past day.
