Mango Markets has resolved its dispute with the Securities and Exchange Commission (SEC) regarding unregistered token sales by paying a $700,000 fine and destroying all MNGO tokens.
For unregistered token sales allegations, Mango Markets has consented to a settlement with the Securities and Exchange Commission (SEC) through its three constituent entities. Mango is required to pay $700,000 and extinguish all MNGO tokens.
The SEC’s most recent press release, which delineates the specifics of this settlement agreement, provides this information. The Securities and Exchange Commission (SEC) has charged Mango DAO, Blockworks Foundation, and Mango Labs LLC as joint participants in unlawful token sales and unregistered broker activities. It specifically states that the unregistered sale of MNGO tokens and other illicit offers generated $70 million.
The SEC has specified that the three entities that control Mango Markets do not acknowledge or deny any allegations. Mango’s structure is the primary focus, despite the fact that Blockworks Foundation is a Panamanian company. Subtly denigrating the project’s governance model, the SEC referred to Mango DAO as a “purportedly decentralised autonomous organisation.”
Jorge G. Tenreiro, Acting Chief of the Crypto Assets and Cyber Unit, stated, “Since the inception of our crypto enforcement program, our perspective has been that the term ‘DAO’ does not alter the reality of the individuals or entities responsible for a project, the activities they engage in, or the necessity of registering their activities.”
These three entities are responsible for paying penalties totalling nearly $700,000 in accordance with the settlement terms. Furthermore, they are required to extinguish all MNGO tokens and take proactive measures to prevent other trading platforms from continuing to sell them. Nevertheless, these agreements necessitate additional court approval.
It is unfortunate for Mango Markets that these SEC allegations are not the only ones it is currently facing. Since the notorious $110 million fraud, the three entities have garnered regulatory attention, according to Bloomberg. Mango DAO preemptively voted in August to cooperate with any potential SEC settlements, according to Bloomberg, despite the fact that charges were only announced today.
Mango Markets has been the subject of regulatory scrutiny since the SEC’s special interest in this fraud case was still ongoing. Mango DAO also overwhelmingly voted to preemptively propose another settlement. Mango DAO proposed a $500,000 settlement in order to halt the CFTC’s ongoing investigations, in reference to the SEC, CFTC, and DOJ’s ongoing investigations.
Despite the fact that this resolution was purportedly unanimous, the CFTC has not publicly endorsed it, and there is limited information available regarding the DOJ investigation. Mango Markets will find it exceedingly challenging to recuperate from these public enquiries, regardless of the outcome.
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