Mango Markets DAO Proposes Settlement with SEC, Plans to Halt MNGO Token Sales
The governance body behind Mango Markets is set to propose a settlement with the Securities and Exchange Commission, involving a civil penalty of $223,228.
This settlement aims to resolve ongoing legal issues and avoid further litigation.
The proposal includes several key actions: halting all MNGO token sales, destroying the DAO’s MNGO holdings, and seeking the removal of MNGO from all trading platforms where it is listed. The proposal is expected to be approved unanimously, with full support from the voting members.
Mango Markets, once a leading decentralized exchange on Solana with a notable total value locked (TVL), faced a significant setback following an exploit in October 2022. The incident involved Avraham Eisenberg, who manipulated MNGO prices to secure a substantial loan. When the MNGO price collapsed, it resulted in considerable debt for the protocol.
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Eisenberg attempted to negotiate a partial repayment of the loan in exchange for avoiding criminal charges, but the proposal was rejected. Following this, various regulatory bodies, including the DOJ, CFTC, and SEC, launched investigations into his actions. Mango Labs LLC also took legal action against Eisenberg, and the protocol faced scrutiny from regulators.
Eisenberg, arrested in December 2022, was convicted in April of commodities fraud, manipulation, and wire fraud. His defense team is now seeking either an acquittal or a new trial, claiming that the original trial venue in the Southern District of New York was inappropriate.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
