• Mango Markets DAO proposes $223,228 settlement with SEC.
• The proposal aims to resolve charges brought by the SEC following a $110 million exploit in October 2022.
• Mango DAO will destroy MNGO tokens, cease sales in the US, and be delisted under the settlement proposal.

Mango Markets DAO, the governing body behind the Solana-based decentralized exchange (DEX), has issued a proposal to its community for a settlement with the U.S. Securities and Exchange Commission (SEC) over allegations of violating U.S. securities laws.

The voting on the “SEC Settlement Offer Proposal” was opened by Mango DAO on August 19 and has already reached a quorum, with over 106 million votes in favor.

The settlement proposal includes a $223,228 fine, which would be paid from The DAO’s treasury, which currently holds nearly $2 million in USD Coin (USDC) and other assets.

Additionally, Mango Markets DAO would destroy all MNGO tokens in its possession, cease all token-related activities in the United States, and attempt to delist the tokens from all exchanges. The proposal allows the DAO to resolve the SEC’s allegations without admitting or denying any wrongdoing.

Challenges for Mango Markets

This potential settlement follows a series of challenges that Mango Markets has faced since October 2022, when trader Avraham Eisenberg operated the platform, leading to loss of over $100 million.

The incident led to criminal charges against Eisenberg, who was found guilty of fraud and manipulation in April 2023. As a result, Mango Markets became the subject of investigations by the SEC, the Department of Justice, and the Commodity Futures Trading Commission.

Despite a 5.3% surge in the past 24 hours after the settlement proposal was revealed, the MNGO token has lost over 91% of its value amid the ongoing legal pressure. The token reached an all-time high of $0.50 in September 2021, after which the token entered a continuous bear trend.

The DAO’s settlement proposal reflects the organization’s strategy to avoid further litigation and put the controversy behind it. However, it remains to be seen whether the SEC will accept the terms.