The U.S. Securities and Exchange Commission (SEC) has agreed to a settlement with the Solana (SOL)-based decentralized exchange (DEX) Mango Markets over alleged regulatory violations.
The SEC alleges that the DEX’s decentralized autonomous organization (DAO) skirted registration provisions and deprived investors of critical protections.
The regulator says Mango DAO raised more than $70 million from unregistered offers and sales of MNGO tokens, and it also alleges that the affiliated entities Blockworks Foundation and Mango Labs LLC engaged in unregistered broker activities.
Mango DAO, Blockworks Foundation and Mango Labs agreed to pay a nearly $700,000 civil penalty but didn’t admit or deny the allegations. They also agreed to destroy their MNGO tokens and request the removal of MNGO tokens from trading platforms.
Mango DAO voted to approve an SEC settlement proposal back in August. Earlier this week, the DAO also voted to propose a $500,000 settlement with the U.S. Commodity Futures Trading Commission (CFTC).
The settlement would also stipulate that Mango DAO cease and desist from violating various commodity regulations. It’s subject to approval from the CFTC.
The CFTC and the SEC launched dual investigations into Mango Markets after crypto trader Avraham Eisenberg exploited the protocol for $110 million worth of digital assets in 2022.
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