Solana-based decentralized exchange Mango Markets could soon be paying another $500,000 fine to settle allegations brought by the Commodity Futures Trading Commission (CFTC).
Settlement with CFTC
On September 22, Mango Markets' legal representatives proposed to the DAO to pay $500,000 to settle an “ongoing and nonpublic” investigation by the CFTC. The charges include failing to register as a commodities exchange, illegally offering services to US customers, and insufficient KYC measures.
Community DAO Reaction
A DAO representative noted that due to the confidentiality of the settlement and the ongoing nature of the CFTC’s investigation, full details of the matter couldn't be publicly disclosed. Despite this, the representative assured that the settlement would avoid any litigation by the CFTC against the DAO. The proposal also clarified that Mango DAO would not admit or deny any wrongdoing if the settlement is accepted by CFTC commissioners. As of publication, the proposal only received support from DAO members, with 123,475,000 votes in favor and 0 votes against it.
Previous Cases and Consequences
This marks the second time in just over a month that Mango DAO has proposed paying a six-figure sum to stem potential regulatory action. On August 19, the DAO voted to pay $670,000 to the SEC for violations of US securities laws. In October 2022, Mango Markets fell victim to a $110 million exploit, leading to a criminal trial against Avraham Eisenberg for fraud and market manipulation.
Despite current challenges, Mango Markets continues to work on agreements to settle allegations with regulators.
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