The U.S. Securities and Exchange Commission (SEC) has agreed to a settlement with Solana (SOL)-based decentralized exchange (DEX) Mango Markets over alleged regulatory violations.
The SEC alleges that the DEX’s Decentralized Autonomous Organization (DAO) has circumvented registration provisions and deprived investors of crucial protections.
The regulator says Mango DAO raised more than $70 million from unregistered offers and sales of MNGO tokens, and also alleges that affiliates Blockworks Foundation and Mango Labs LLC engaged in unregistered brokerage activities.
Mango DAO, Blockworks Foundation and Mango Labs agreed to pay a civil penalty of nearly $700,000, but did not admit or deny the allegations. They also agreed to destroy their MNGO tokens and request the removal of MNGO tokens from trading platforms.
Mango DAO voted to approve an SEC settlement proposal in August. Earlier this week, the DAO also voted to approve a proposed $500,000 settlement with the U.S. Commodity Futures Trading Commission (CFTC).
The settlement would also require Mango DAO to cease violating various commodity regulations. It is subject to approval by the CFTC.
The CFTC and the SEC have launched a dual investigation into Mango Markets after crypto trader Avraham Eisenberg abused the protocol for $110 million in digital assets in 2022.
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