- Mango Markets DAO proposes a $223,228 SEC settlement.
- The proposal aims to resolve SEC charges after a $110M exploit in October 2022.
- Mango DAO will destroy MNGO tokens, cease US sales, and delist from exchanges in the settlement offer proposal.
Mango Markets DAO, the governing body behind the Solana-based decentralized exchange (DEX), has made a proposal to its community for a settlement offer with the United States Securities and Exchange Commission (SEC) for accusations of violating US securities laws.
Voting on the “SEC Settlement Offer Proposal” was opened by Mango DAO on August 19, and it has already reached a quorum, with over 106 million votes cast in favour.
The settlement offer includes a $223,228 penalty, which would be paid from the DAO’s treasury, currently holding nearly $2 million in USD Coin (USDC) and other assets.
In addition, Mango Markets DAO would destroy all MNGO tokens in its possession, cease all token-related activities in the United States, and seek to delist the tokens from all exchanges. The proposal allows the DAO to resolve the SEC’s allegations without admitting or denying any wrongdoing.
Mango Markets challenges
This potential settlement follows a series of challenges that Mango Markets has faced since October 2022, when trader Avraham Eisenberg exploited the platform, leading to over $100 million loss.
The incident resulted in criminal charges against Eisenberg, who was found guilty of fraud and manipulation in April 2023. Consequently, Mango Markets became the subject of investigations by the SEC, the Department of Justice, and the Commodity Futures Trading Commission.
Despite witnessing a 5.3% uptick over the past 24 hours after the settlement proposal was revealed, the MNGO token has lost over 91% of its value amid the ongoing legal pressures. The token reached an all-time high of $0.50 in September 2021, after which the token descended into a continuous bear trend.
The DAO’s settlement offer reflects its strategy to avoid further litigation and move forward from the controversy, though it remains to be seen if the SEC will accept the terms.