The Solana-based decentralized exchange Mango Markets has put forward a proposal to settle with the U.S. Commodity Futures Trading Commission (CFTC) for a sum of $500,000. The decentralized autonomous organization (DAO) of Mango Markets voted to approve this settlement offer, which includes a civil penalty and an agreement to cease violating various commodity regulations.
If accepted by the CFTC, the $500,000 civil penalty will be paid by Mango DAO along with two affiliated entities, Blockworks Foundation and Mango Labs, LLC. The investigations by both the CFTC and the Securities and Exchange Commission (SEC) into Mango Markets were initiated following an incident where crypto trader Avraham Eisenberg exploited the protocol for $110 million worth of digital assets in 2022.
In August, Mango DAO members also approved a settlement proposal to the SEC for violating clauses in The Securities Acts of 1933 and 1934. The proposed settlement with the SEC includes a civil penalties payment of $233,228 and an agreement to cease all offers, sales, or resales of MNGO tokens on the protocol through interstate commerce in the United States. Additionally, the protocol would commit to destroying or making unavailable all MNGO tokens in its possession within 10 days of the SEC’s acceptance of the terms.
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This information is crucial for investors and users of Mango Markets to be aware of the ongoing regulatory actions and settlements being proposed. The transparency and compliance with regulatory bodies are essential for the long-term success and sustainability of decentralized exchanges like Mango Markets.