A decentralized finance (DeFi) platform based on smart contract platform Solana (SOL) is drafting a settlement proposal with the U.S. Securities and Exchange Commission (SEC).
In a new community proposal, the Mango Markets (MNGO) decentralized autonomous organization (DAO) has voted to settle with the SEC even though the regulator has not formally charged the decentralized exchange (DEX) protocol with crimes.
However, the SEC and other federal agencies launched an investigation into Mango Markets after cryptocurrency trader Avraham Eisenberg exploited the protocol for $110 million in 2022.
According to Mango’s DAO, the SEC accused them of violating several provisions of the Securities Acts of 1933 and 1934.
The DAO goes on to say that the settlement, if accepted by the SEC, would include the payment of civil penalties of $233,228 and an agreement to cease “all of its offers, sales, or resales of MNGO tokens on the Protocol by means or instrumentalities of 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.
“In order to resolve the SEC’s allegations against the DAO, this proposal seeks to authorize CyberByte sp. zoo, which is acting as the DAO’s representative… to make a binding settlement offer to the SEC on behalf of the DAO that would include payment of a civil monetary penalty, injunctive relief, and undertakings, to execute the settlement documents on behalf of the DAO, and to perform the undertakings contemplated by the settlement if accepted by the SEC.
As part of the settlement offer, the DAO would neither admit nor deny the SEC’s allegations.
Eisenberg was indicted and later convicted of commodities fraud in 2023 after artificially inflating the price of MNGO and borrowing large amounts of the digital asset from the DEX using unrealized profits from his long positions in the token.
MNGO is trading at $0.0162 at the time of writing, up 6% in the last 24 hours.
Don’t miss a thing – Subscribe to receive email alerts directly to your inbox
Check price
Follow us on XFacebook and Telegram
Surf the Daily Hodl Mix
 
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image generated: Midjourney
