Mango Markets, a decentralized exchange (DEX) built on Solana, is currently considering a settlement proposal with the United States Securities and Exchange Commission (SEC) amid allegations of securities law violations. The Mango DAO, which oversees the DEX, initiated a vote on August 19 to decide on the proposed settlement, which includes a series of measures aimed at resolving the ongoing legal dispute.
Mango Markets' Struggles
Mango Markets has faced significant challenges since October 2022, when trader Avraham Eisenberg manipulated the protocol and siphoned off $110 million. Eisenberg was arrested in Puerto Rico in December 2022 and was found guilty of fraud and manipulation in April this year.
Securities Law Violations
In response to these investigations, the SEC has accused Mango DAO, Mango Labs, and Blockworks Foundation of violating multiple securities regulations. The settlement proposal put forth by the DAO includes paying a $223,228 civil penalty from its treasury, which currently holds nearly $2 million in USD Coin (USDC) and other assets. The proposal stipulates that Mango DAO would neither admit nor deny any wrongdoing.
MNGO Market Movement
Meanwhile, MNGO token prices saw a modest gain of 5.7% following the announcement, reaching $0.015. However, the token remains 96% below its September 2021 all-time high of nearly $0.50. MNGO currently boasts a market cap of $15.4 million, sitting at 835th spot among the largest cryptocurrencies by market cap.
The proposed settlement reflects a strong desire by Mango DAO to move forward and resolve the current regulatory challenges, avoiding protracted litigation. The final decision by the SEC on this proposal is yet to be known.
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