Solana-powered decentralized exchange Mango Markets has proposed a settlement with the SEC. This follows the allegations of violations of the United States securities laws.
Mango Markets DAO has released an SEC settlement offer proposal to its community members. The offer was opened up for voting and has reached approval with 106,717,813 votes.
The proposal stated that there had been an ongoing investigation by US regulators following the Mango exploit in 2022. The SEC also charged Avraham Eisenberg with orchestrating an attack by manipulating the price of MNGO tokens.
Additionally, the SEC also inquired into Mango Markets and alleged that the DAO had violated United States securities laws.
Mango Markets settlement proposal includes paying a monetary penalty
As part of the SEC settlement offer proposal, the DAO proposed to pay a civil monetary penalty and injunctive relief to execute settlement documents on behalf of the DAO. The DAO also stated that, as part of the settlement offer, “the DAO would not be admitting or denying the SEC’s allegations.”
At press time, the proposal has received the required number of votes for approval. The DAO has stated that if approved, it will pay a civil penalty of $223,228 from the DAO treasury to the SEC.
MNGO tokens will be delisted after the settlement
According to the proposal, Mango Markets will halt all sales, resales, and offers of MNGO tokens in the United States. The MNGO tokens will either be destroyed or made unavailable for trading. The settlement also includes a request to remove MNGO tokens from all crypto exchanges and trading platforms.
If the DAO also acquires any MNGO tokens in the future, they should be destroyed or made unavailable for trading. All the terms and conditions mentioned in the proposal will be implemented once the SEC accepts the settlement offer.
The DAO will also give the green flag for releasing $446,456 from the DAO Treasury to be paid to the SEC if the offer is accepted. As per CoinMarketCap data, the MNGO token is trading in the $0.0153 range. The token has also increased by 6% in the last 24 hours.
