The decentralized exchange Mango Markets on the Solana blockchain has announced its closure due to a series of legal issues and the aftermath of a hack.
Launch and Objectives of Mango Markets
Launched in August 2021, Mango Markets aimed to offer fast and affordable trading using MNGO tokens. The platform quickly gained popularity for its low fees and high transaction speed.
Legal Issues and Hacks
In September 2024, the U.S. Securities and Exchange Commission (SEC) charged Mango DAO with selling unregistered MNGO tokens, raising over $70 million. As part of the settlement, Mango agreed to pay a $700,000 fine and remove MNGO tokens from exchanges.
Additionally, in 2022, the platform suffered a major hack when trader Avraham 'Avi' Eisenberg manipulated the MNGO price and stole over $100 million. Despite returning $67 million following a community vote, he retained $40 million, leading to his arrest for fraud and market manipulation.
Closure Decision and Community Reaction
The decision to close Mango Markets was made following a community proposal to halt borrowing and lending on the platform. This proposal was widely accepted, and the closure is set to take effect on January 13, 2025.
The Mango DAO, responsible for key decision-making, chose to shut down the platform to avoid further complications. Many contributors expressed a desire to move on from the ongoing legal and financial issues.
The closure of Mango Markets marks the end of a significant project in the world of decentralized finance, facing both regulatory pressure and technical challenges.
