Mango Markets, a DeFi platform, has reached a settlement with the U.S. Securities and Exchange Commission (SEC), even though the SEC has not officially accused them of any wrongdoing. This development follows an investigation into the platform for potentially offering unregistered securities (the MNGO token). Mango DAO members voted in favor of the settlement, which involves a $223,228 penalty and a halt to all trading of MNGO tokens in the U.S. market.
SEC Investigation
The SEC investigated Mango Markets for potentially offering unregistered securities through the MNGO token. However, formal charges were not filed against the platform.
MNGO Token Manipulation Incident
Last year, trader Avraham Eisenberg was accused of manipulating the MNGO token to steal $110 million from Mango Markets. This incident marked the first U.S. criminal case involving crypto market manipulation.
Settlement and Its Consequences
Mango Markets DAO members voted for a settlement with the SEC to avoid a costly legal dispute. The agreement includes a civil penalty of $223,228 and a complete cessation of MNGO token trading within the U.S.
Mango Markets managed to avoid formal charges by the SEC by reaching a settlement that includes significant penalties and a halt to token trading in the U.S. This case underscores the importance of regulatory compliance in the crypto and DeFi sectors.
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