The SEC has charged Mango DAO and Blockworks Foundation with unregistered sale of 'MNGO' tokens and unlawful broker activities.
SEC Charges
According to the SEC, Mango DAO and Blockworks Foundation raised over $70 million from the sale of MNGO tokens starting in August 2021. The SEC alleged that these entities bypassed federal registration requirements meant to protect investors. All charged parties settled the allegations by agreeing to destroy their tokens and pay a fine.
Unregistered Brokers
The SEC also charged Blockworks Foundation and Mango Labs LLC with acting as unregistered brokers, alleging that they recruited users to trade on Mango Markets and provided advice and valuations on investment opportunities. This activity meant that the entities were operating as brokers without the necessary regulatory registration.
Mango Markets Token Destruction
Mango DAO, Blockworks Foundation, and Mango Labs agreed to settle the SEC charges without admitting or denying the allegations. All charged parties agreed to pay nearly $700,000 in penalties, destroy their MNGO tokens, and request that these tokens be removed from trading platforms. They also agreed not to solicit trading of MNGO tokens in the future.
The SEC continues to monitor compliance with registration rules, holding entities accountable for failing to protect investors.
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