TechFlow news: Solana-based decentralized exchange Mango Markets is negotiating a settlement with the U.S. Securities and Exchange Commission (SEC) over allegations of violating securities laws. The Mango DAO has initiated a vote on an "SEC Settlement Proposal." The proposal includes paying a $223,228 penalty to the SEC, permanently enjoining the DAO from violating Sections 5(a) and 5(c) of the Securities Act of 1933, and immediately ceasing all offers, sales, or resales of MNGO tokens within the United States.
In addition, the DAO will destroy or render non-transferable all MNGO tokens under its control within 10 days after the final judgment, and within 30 days require all known cryptocurrency exchanges and trading platforms listing MNGO to delist the token.
Notably, the proposal authorizes DAO representatives to release a total of $669,684 from the DAO treasury (including $446,456 to cover fines for Mango Labs and Blockworks) to satisfy the SEC's final judgment.
If the SEC accepts the settlement, Mango Markets may face significant changes to its future operations. Previously, it was reported that Mango Markets suffered an attack in October 2022 from Eisenberg’s “highly profitable trading strategy,” resulting in a $110 million loss to the protocol.
