Mango DAO Reaches Settlement with SEC Over Unregistered Securities
Mango DAO settled charges with the SEC for selling unregistered MNGO tokens and offering unlicensed broker services through Mango Labs LLC and Blockworks Foundation. The settlement requires Mango DAO to destroy its MNGO tokens, halt trading requests on exchanges, and pay $700,000 in fines. The agreement, still pending court approval, follows a community vote in August.
Additionally, Mango DAO reached a $500,000 settlement with the CFTC in October 2023 over a similar investigation. The SEC's complaint accused Mango DAO of raising $70 million from the sale of MNGO tokens in 2021, while Mango Labs was accused of acting as an unregistered broker.
The settlement follows the conviction of Avraham Eisenberg, who exploited Mango Markets in 2022, resulting in $110 million in losses. Eisenberg faces sentencing for fraud and market manipulation in December. This case marks a notable event amid increased regulatory focus on DeFi platforms and token offerings.
