TechFlow news — On January 12, according to Cointelegraph, Solana-based decentralized exchange Mango Markets is winding down operations after settling with the U.S. Securities and Exchange Commission (SEC), conducting governance votes, and addressing legal issues stemming from a 2022 exploit. Mango Markets announced on January 11 that it would cease operations and urged users to close their positions promptly. Starting January 13, a governance proposal will adjust interest rates and collateral requirements, effectively terminating its lending services.
In September 2024, the SEC charged Mango DAO and the Blockworks Foundation with unregistered securities offerings. The regulator alleged that in August 2021, Mango raised over $70 million through the sale of its MNGO governance token, violating the Securities Act of 1933. Under the settlement terms, Mango DAO must pay a $700,000 penalty, burn all remaining MNGO tokens, and request delisting of the token from exchanges. Additionally, the project must pay $500,000 to settle charges with the Commodity Futures Trading Commission (CFTC).
The platform was previously exploited in October 2022 by hacker Avraham Eisenberg, resulting in losses exceeding $100 million. Eisenberg remains in custody, with his sentencing now scheduled for April 10, 2025, and faces up to 20 years in prison.
