Settlement Proposal Overview
Mango Markets, a decentralized exchange powered by Solana, has proposed a settlement with the SEC following allegations of violations of U.S. securities laws. The Mango Markets DAO has submitted a settlement offer to its community members, which has recently been approved with 106,717,813 votes.
Background of the Investigation
The proposal reveals that an ongoing investigation by U.S. regulators followed the Mango exploit in 2022. The SEC also charged Avraham Eisenberg with orchestrating an attack by manipulating the price of MNGO tokens. Additionally, the SEC has investigated Mango Markets, alleging that the DAO violated U.S. securities laws.
Details of the Settlement Proposal
The settlement proposal includes the following key points:
- Monetary Penalty: The DAO has proposed to pay a civil monetary penalty of $223,228 from the DAO treasury to the SEC.
- Injunctive Relief: The DAO will execute settlement documents on behalf of the DAO without admitting or denying the SEC’s allegations.
Impact on MNGO Tokens
As part of the settlement, Mango Markets will:
- Halt MNGO Token Transactions: All sales, resales, and offers of MNGO tokens in the United States will be stopped. The tokens will either be destroyed or made unavailable for trading.
- Request Delisting: MNGO tokens will be removed from all crypto exchanges and trading platforms.
- Future Acquisitions: Any future MNGO tokens acquired by the DAO will also be destroyed or made unavailable for trading.
The terms of the proposal will be implemented once the SEC accepts the settlement offer. Additionally, the DAO plans to release $446,456 from the DAO Treasury to the SEC upon acceptance of the offer.
Current Status of MNGO Token
According to CoinMarketCap data, the MNGO token is currently trading around $0.0153 and has seen a 6% increase in the last 24 hours.
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