Mango Markets Proposes $500K Settlement With CFTC Amid Investigation

The decentralized exchange (DEX) Mango Markets, built on Solana (SOL), has proposed a settlement of $500,000 with the U.S. Commodity Futures Trading Commission (CFTC).

This week, the DEX’s decentralized autonomous organization (DAO) voted in favor of a proposal that consists of the civil penalty and an agreement to halt any violations of various commodity regulations.

If the CFTC accepts the $500,000 civil penalty, the payment will be made by Mango DAO along with two associated entities: Blockworks Foundation and Mango Labs, LLC.

The CFTC and the Securities and Exchange Commission (SEC) began investigations into Mango Markets following an incident in 2022 where crypto trader Avraham Eisenberg exploited the protocol for $110 million in digital assets.

In August, members of Mango DAO voted to approve a settlement proposal submitted to the SEC, which accused them of breaching several provisions of The Securities Acts of 1933 and 1934.

Should the SEC approve the proposal, it would entail a civil penalties payment of $233,228 and an agreement to halt “all offers, sales, or resales of MNGO tokens on the protocol through means or instrumentalities of interstate commerce in the United States.”

Additionally, the protocol would commit to destroying or making unavailable all MNGO tokens it holds within 10 days of the SEC’s acceptance of these terms.

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