The U.S. Securities and Exchange Commission (SEC) has reached a settlement with the Solana (SOL)-based decentralized exchange (DEX) Mango Markets regarding alleged regulatory breaches.
The SEC claims that the DEX’s decentralized autonomous organization (DAO) bypassed registration requirements and deprived investors of essential protections.
The regulator states that Mango DAO raised over $70 million from unregistered offers and sales of MNGO tokens, additionally alleging that the associated entities Blockworks Foundation and Mango Labs LLC participated in unregistered broker activities.
Mango DAO, Blockworks Foundation, and Mango Labs have agreed to pay a civil penalty of nearly $700,000 without admitting or denying the allegations. They also consented to burn their MNGO tokens and request the delisting of MNGO tokens from trading platforms.
Mango DAO voted in favor of 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 require Mango DAO to cease and desist from violating various commodity regulations and is subject to CFTC approval.
The CFTC and SEC initiated concurrent 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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