Mango Markets Shuts Down Amid SEC Settlement and Internal Struggles

Decentralized exchange Mango Markets is shutting down operations following an SEC settlement that required the destruction of its MNGO tokens and their delisting from exchanges.

The announcement, shared on the platform’s X account, confirmed the wind-down of Mango v4 and Boost, citing the economic impracticality of maintaining borrowing services under new conditions.

Key changes to interest rates and collateral requirements aimed at discouraging borrowing will take effect on January 13, following unanimous approval by the platform’s governance process.

Mango Markets has faced a series of setbacks since its inception. In 2022, the platform suffered a $110 million exploit when Avraham “Avi” Eisenberg manipulated MNGO token prices. While Eisenberg referred to the incident as a “profitable trading strategy,” he was later convicted of fraud, though he continues to pursue a retrial.

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In 2024, Mango faced further challenges, including an SEC lawsuit accusing it of selling unregistered securities and operating as an unregistered broker. The DAO ultimately settled, agreeing to comply with the regulator’s terms. The year also saw internal disputes, as key contributors clashed over locked MNGO tokens linked to the FTX estate, deepening the platform’s instability.

Alexander Stefanov