Mango Markets Proposes $500K Settlement With the CFTC After Exploit Investigation

The decentralized exchange Mango Markets, built on Solana, has put forth a $500,000 settlement proposal to the U.S. Commodity Futures Trading Commission (CFTC).

This week, Mango’s decentralized autonomous organization (DAO) approved the offer, which includes paying a civil fine and agreeing to stop breaching commodity regulations.

If the CFTC accepts, the $500,000 penalty will be paid by Mango DAO along with two related entities, Blockworks Foundation and Mango Labs, LLC.

Both the CFTC and the SEC launched investigations into Mango Markets following a 2022 incident when Avraham Eisenberg exploited the platform, resulting in a loss of $110 million in digital assets.

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In August, Mango DAO members voted in favor of a settlement proposal for the SEC, which had charged the exchange with violations under the Securities Acts of 1933 and 1934.

If the SEC approves, Mango Markets would pay $233,228 in penalties and halt all MNGO token-related transactions within the U.S. The exchange also agreed to eliminate all remaining MNGO tokens in its possession within 10 days of the SEC’s acceptance of the settlement.

Alexander Stefanov