Mango Markets, a decentralized exchange (DEX) on Solana, has agreed to pay a $223,228 fine to the SEC as part of a settlement proposal to avoid further legal issues.
Fine and Settlement with SEC
The settlement proposal includes halting all sales of MNGO tokens, destroying the DAO's remaining MNGO holdings, and requesting the removal of MNGO from all crypto exchanges and platforms where it is currently traded. The governance proposal is expected to pass unanimously, with 100% (295,244,521) of votes currently in favor.
Remedial Measures
Mango Markets reached a total value locked (TVL) of nearly $200 million at its peak. However, in October 2022, Avraham Eisenberg manipulated the price of MNGO tokens, taking out a $120 million loan, leading to a sharp decline in MNGO's price and significant bad debt.
Historical Background and Litigation
The DOJ, CFTC, and SEC launched investigations into Eisenberg's actions, and he was arrested in December 2022 and charged with commodities fraud, manipulation, and wire fraud. Eisenberg's legal team is currently seeking either an acquittal or a new trial, arguing that the original trial was improperly held in the Southern District of New York.
Mango Markets are on the path to settle with the SEC through the payment of the fine and implementation of various remedial measures. Meanwhile, the litigation against Avraham Eisenberg continues.
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