Mango Markets DAO, the decentralized organization that runs the Solana-based exchange, is thinking about reaching a deal with the U.S. Securities and Exchange Commission (SEC) to settle claims that it broke securities laws. The DAO has started voting on a plan that calls for paying a $223,228 fine, stopping all sales of MNGO tokens in the US, and asking that these tokens be taken off of platforms.
Members of the DAO will decide on the suggested settlement, which does not include Mango DAO admitting or rejecting the SEC’s claims. At the time this was written, the plan had already hit a quorum, which means that a majority of votes were in favor. However, people can still vote for a few more days.
Since October 2022, when a trader used flaws in the platform to steal $110 million, Mango Markets has been under a lot of criticism. For this, the trader was charged with theft and market manipulation, and the SEC, the Department of Justice, and the Commodity Futures Trading Commission all looked into what happened.
Along with paying the fine, Mango DAO agreed to destroy all of its leftover MNGO tokens and stop selling them in the US. As of right now, the DAO has almost $2 million in assets, including USD Coin, to pay the fine.
The settlement plan’s goal is to avoid long court battles with the SEC and settle the problems without officially admitting any wrongdoing. But the SEC hasn’t agreed to the plan yet, so it’s not clear what will happen.
This possible settlement comes after the SEC took more steps against different crypto projects and exchanges as part of its ongoing efforts to police securities laws in the digital asset space.
