Mango Markets DAO votes on settlement proposal with SEC
Quick Take
- Solana-based decentralized exchange Mango Markets is voting on a proposed settlement with the U.S. Securities and Exchange Commission over alleged securities violations.
Mango Markets, the Solana-based DeFi platform that was drained of over $110 million by the now-convicted Avraham Eisenberg in 2022, is mulling a proposed settlement with the U.S. Securities and Exchange Commission (SEC) over the regulator’s allegations that the platform violated U.S. securities laws.
Mango DAO, the platform's governing entity, opened up voting on the “SEC Settlement Offer Proposal” on Monday. The DAO proposed a settlement that would see the entity pay the SEC treasury $223,228 in fines, destroy its holdings of MNGO tokens, and seek delisting from trading platforms.
The proposal seeks to resolve the SEC's allegations while avoiding litigation and without admitting or denying any wrongdoing. The proposal has already reached a quorum with 106,717,813 votes, and the unanimous vote was “yes.”
Reports that Mango Markets was facing regulatory scrutiny emerged earlier this year, ahead of Eisenberg’s trial for the exploit. Mango was also reportedly facing probes from the Department of Justice and the Commodity and Futures Trading Commission, which are not being addressed in the current proposal.
Once a top decentralized finance protocol on Solana, Mango has struggled since Eisenberg carried out the exploit. During Eisenberg’s trial, his legal team repeated his claims that he executed a winning and legal trading strategy enabled by the protocol. The court found him guilty of commodities fraud, commodities manipulation and wire fraud. Eisenberg has since pushed to have the conviction cleared and get a new trial.
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