SEC Settles with Mango Markets Operators; Entities to Pay $700,000 and Destroy MNGO Tokens

Sep 27, 2024, 07:05 PM

The U.S. Securities and Exchange Commission (SEC) has settled charges against Mango DAO, Blockworks Foundation, and Mango Labs, entities operating the decentralized finance platform Mango Markets, for the unregistered offer and sale of the platform's "MNGO" governance tokens. Mango Markets had previously raised $70 million through the sale of MNGO tokens without proper registration. As part of the settlement, the entities agreed to pay $700,000 in penalties, destroy existing MNGO tokens, and request that exchanges delist the tokens from their platforms. The SEC identified the MNGO tokens as securities and charged the entities for unregistered sales and acting as a broker without registration. The settlement aims to resolve issues related to the unregistered sale of MNGO tokens and the entities' broker activities.