The SEC has charged Mango DAO and Blockworks Foundation for selling unregistered securities. As part of the settlement, both entities agreed to pay a $700,000 fine.
SEC Charges
On September 27, the United States Securities and Exchange Commission (SEC) filed “settled charges” against the decentralized autonomous organization Mango (Mango DAO) and the Blockworks Foundation for selling unregistered securities. According to the SEC complaint, in August 2021, Mango DAO and Blockworks Foundation allegedly violated the Securities Act of 1933 by raising more than $70 million from selling Mango (MNGO) governance tokens to investors, including U.S. residents.
Settlement Agreement and Conditions
As part of the settlement agreement, both entities have collectively agreed to pay a $700,000 fine, destroy their Mango tokens, petition exchanges to delist the tokens, and refrain from marketing the tokens to exchanges in the future. The SEC noted that the settlement was reached without any party admitting or denying wrongdoing and is still subject to court approval.
Mango DAO's Response
On August 19, 2024, the Mango DAO initiated a community vote to propose settling with the SEC for $223,228 and destroying the Mango tokens, which passed after two days of voting. More recently, in September 2024, Mango Markets proposed offering the Commodities Futures Trading Commission (CFTC) a $500,000 settlement to end the investigation against the platform. This proposed settlement likewise featured no admission of wrongdoing.
This case highlights that the SEC continues to monitor compliance with securities laws by cryptocurrency projects, regardless of their decentralized nature.
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