Mango Markets DAO Proposes Settlement Offer to US SEC
Mango Markets DAO, the governing body behind the Solana-based decentralized exchange (DEX), has proposed a settlement with the U.S. Securities and Exchange Commission (SEC) over alleged violations of U.S. securities laws.
The proposal includes a $223,228 fine to resolve SEC charges stemming from a $110 million breach in October 2022. Mango DAO plans to pay the fine from its treasury, which holds nearly $2 million in USDC and other assets.
As part of the settlement offer, Mango Markets DAO will destroy all MNGO tokens, cease token-related activities in the United States, and seek delisting from exchanges. This proposal allows the DAO to settle the SEC’s allegations without admitting to any wrongdoing.
Challenges Faced by Mango Markets
Since the October 2022 breach that led to this proposed settlement, Mango Markets has encountered significant challenges. The platform suffered losses exceeding $100 million when trader Avraham Eisenberg exploited vulnerabilities.
Eisenberg faced criminal charges and was found guilty of fraud and manipulation in April 2023. Despite a 5.3% increase in the MNGO token price following the settlement proposal, the token has lost over 91% of its value due to ongoing legal issues.
After reaching an all-time high of $0.50 in September 2021, the MNGO token entered a bear trend. The DAO’s decision to offer a settlement reflects its aim to avoid prolonged litigation and move past controversy.
It remains to be seen whether the SEC will accept the proposed terms and bring closure to this chapter for Mango Markets.
