Mango Markets Offers Settlement to SEC Over Alleged Violations

Mango Markets is negotiating a potential settlement with the U.S. Securities and Exchange Commission (SEC) over claims of breaching securities regulations.

The decentralized exchange (DEX) on Solana has put forward a settlement proposal that includes paying a fine, destroying its MNGO tokens, and seeking removal from trading platforms. Voting on this proposal began on August 19 and has already secured enough support to proceed.

This move follows a significant setback for Mango Markets, which suffered a $110 million exploit in October 2022 by trader Avraham Eisenberg, who was later convicted for fraud. The SEC, alongside other regulatory agencies, is investigating Mango Markets for alleged securities violations.

Under the proposed settlement, Mango DAO would neither confirm nor deny the SEC’s allegations but would agree to pay a $223,228 fine from its treasury, halt all MNGO token transactions in the U.S., and destroy existing tokens. This proposal aims to settle the issue without further legal battles, although it still needs SEC approval.

In related news, Eisenberg is challenging his conviction, arguing that his activities were legitimate trading. MNGO tokens have seen a slight increase but remain significantly below their peak value from 2021.