The Solana blockchain-based decentralized exchange (DEX), Mango Markets, has announced its closure. The decision follows a turbulent era defined by regulatory concerns, a large exploit, and dwindling user trust. In a recent update, the platform’s control authority confirmed the closure and advised users to close their positions before the complete halt of operations.
The decision to wind down comes after an SEC settlement accusing Mango Markets of marketing unregistered securities. In 2021, the platform raised more than $70 million by selling its native governance token, MNGO, which the SEC ruled a violation of federal securities laws. As part of the settlement, Mango agreed to pay $700,000 in penalties, destroy its MNGO tokens, and have them delisted from exchanges. This legal development exacerbated the platform’s existing issues, leading to its decision to close.
The 2022 Exploitation and Financial DeclineMango Markets’ problems began in October 2022, when a trader exploited a flaw in the system, manipulating the price of its MNGO token and siphoning over $100 million. A governance vote eventually restored $67 million, but the exploit caused significant financial losses and prompted legal action. The trader, Avraham “Avi” Eisenberg, has been detained and accused of fraud and market manipulation. The exploit had a significant impact on the platform’s reputation, forcing its total value lockdown (TVL) to drop from a high of $210 million in November 2021 to just $9 million by early 2025.
Governance and Final ShutdownIn the months leading up to the closure, Mango Markets’ decentralized autonomous organization (DAO) recommended adjustments to its borrowing and lending criteria in order to discourage future activity on the site. The recommendations, which garnered unanimous support, effectively rendered borrowing economically unfeasible, paving the path for the platform’s closure. These changes will take full effect on January 13, 2025.
The platform’s co-founders and contributors declared a collective wish to exit the project, citing regulatory restrictions, financial difficulties, and ongoing legal fights as major factors for their decision. Mango Markets’ demise brings an end to an ambitious initiative that faced insurmountable obstacles in the quickly growing decentralized finance (DeFi) market.
As the platform prepares to shut down, it leaves a legacy of both creativity and caution for the DeFi community, emphasizing the crucial need for strong security measures and regulatory compliance.
