Mango Markets DAO Settlement Proposal to US SEC
Recently, Mango Markets DAO, the governing body behind the Solana-based decentralized exchange, made a settlement proposal to the U.S. Securities and Exchange Commission (SEC) regarding alleged violations of U.S. securities laws.
The proposal includes a fine of US$223,228, to be paid from the DAO’s treasury. Additionally, Mango DAO plans to destroy all MNGO tokens it owns, cease token-related activities in the United States, and seek to delist the tokens from exchanges. This proposal aims to resolve SEC charges without admitting or denying any wrongdoing.
Background and Challenges Faced by Mango Markets
Since October 2022, Mango Markets has encountered significant challenges, particularly after a trader exploited the platform, resulting in losses exceeding $100 million. This incident led to potential legal action and the recent settlement proposal to the SEC.
Following the breach, the trader responsible was criminally charged and eventually found guilty of fraud and manipulation in April 2023. The value of the MNGO token also experienced a significant decline, dropping more than 91% amid legal pressures.
Implications of the Settlement Proposal
Despite the initial positive market response, Mango Markets is taking steps to avoid further litigation and controversy by proposing a settlement with the SEC. The DAO’s decision to pay the fine, destroy tokens, and cease activities in the U.S. reflects its commitment to resolving the allegations.
While the community has voted in favor of the settlement offer, the final decision lies with the SEC. Acceptance of the terms could pave the way for Mango Markets to move forward and regain stability in the decentralized exchange space.
