The United States Securities and Exchange Commission (SEC) has reached a settlement with Mango Markets, the Solana (SOL)-based decentralized exchange (DEX), regarding alleged regulatory violations.
The SEC alleges that the DEX’s Decentralized Autonomous Organization (DAO) circumvented registration provisions and deprived investors of critical protections.
The regulator claims that Mango DAO raised more than $70 million through unregistered offerings and sales of MNGO tokens, and it also alleges that affiliated entities Blockworks Foundation and Mango Labs LLC engaged in unregistered brokerage activities. recorded.
Mango DAO, Blockworks Foundation, and Mango Labs agreed to pay a civil penalty of nearly $700,000, but neither admitted nor denied 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 a proposed rule from the SEC in August. Earlier this week, the DAO also voted to reach a $500,000 settlement with the U.S. Commodity Futures Trading Commission (CFTC).
The settlement would also stipulate that Mango DAO would stop violating various product regulations. It is subject to approval by the CFTC.
The CFTC and SEC have launched a dual investigation into Mango Markets after crypto trader Avraham Eisenberg mined the protocol for $110 million in digital assets in 2022.
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