Mango Markets Pays Fine to SEC, MNGO Tokens Must be Destroyed!

Bittime - Mango Markets, a DEX on the Solana network, is currently facing charges from the US SEC. Reportedly, Mango Markets had to pay a fine of $223,228 to the SEC and destroy all MNGO tokens.  

Mango Markets and SEC

Mango DAO, the entity that manages Mango Markets, recently held a vote regarding the “SEC Settlement Proposal”. 

The proposal includes several key points, including payment of a $223,228 fine to the SEC, a permanent ban KNIFE for violating Sections 5(a) and 5(c) of the Securities Act of 1933, as well as immediate termination of the offer, sale, or resale of all tokens MNGO in the US.

All Tokens MNGO Must be Destroyed

The aftermath of this problem, Mango DAO is also obliged to destroy all MNGO tokens which are under his control within 10 days after the final decision.

Additionally, all known crypto trading platforms trade MNGO, it is also required to remove the token within 30 days.

Read Also: Ripple Fines $125 Million, Lower than SEC Demand

The Future of Mango Markets

If the SEC approves this settlement, Mango Markets' future operating model may undergo major changes. 

Existence of MNGO tokens as a governance token used by investors to vote on various important decisions, including token listing, buybacks, and debt payments, is highly questionable. 

Without the MNGO token, Mango Markets' daily operations could face very serious obstacles.

Mango Markets Legal Process is Ongoing

In October 2022, Mango Markets experienced a significant attack due to a very profitable trading strategy from Avraham Eisenberg. This attack resulted in losses of $110 million and landed Mango Markets in legal trouble.

Mango DAO was accused of selling unregistered securities. Additionally, Mango Labs, the developer of Mango Markets, is also facing accusations of acting as an unlicensed broker. Another related entity, the Blockworks Foundation, also faces similar claims.

In the proposed settlement, Mango DAO neither admits nor denies wrongdoing. They only agreed to pay the fine and comply with other provisions stipulated in the proposal. 

Read Also: Silvergate Agrees to Pay $63 Million Fine to Settle SEC Allegations 

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