According to Cointelegraph: Mango Markets DAO is currently deliberating a settlement offer with the United States Securities and Exchange Commission (SEC) in response to accusations that it violated U.S. securities laws. The decentralized autonomous organization (DAO), which oversees the Solana-based decentralized exchange (DEX), initiated a vote on an “SEC Settlement Offer Proposal” on August 19.The proposed settlement entails Mango DAO neither admitting nor denying any wrongdoing while agreeing to pay a $223,228 fine. Additionally, the DAO would cease all offers, sales, and resales of its MNGO tokens within the U.S., destroy any remaining tokens in its possession, and request that the tokens be delisted from all exchanges.At the time of writing, the proposal has garnered significant support, with over 106 million votes in favour and more than two days left in the voting period. The DAO’s Treasury, which holds nearly $2 million in USD Coin (USDC) and other assets, would be used to pay the fine if the settlement is accepted.Mango Markets has been under scrutiny since October 2022, following a manipulation scheme by trader Avraham Eisenberg, who exploited the protocol and drained $110 million from the platform. Eisenberg was later found guilty of fraud and manipulation in an April trial. The incident led to investigations by the SEC, Department of Justice, and Commodity Futures Trading Commission, all of which accused Mango DAO, Mango Labs, and Blockworks Foundation of violating securities regulations.The settlement proposal is seen as an attempt to avoid litigation and resolve the SEC’s allegations without admitting guilt. However, the settlement has yet to be accepted by the SEC. If approved, Mango DAO would close this chapter and refocus on its operations, though the DEX has been struggling to recover since the October heist.In related developments, MNGO token prices rose by 5.3% on the day of the proposal's release, reaching $0.015, though they remain 97% below their all-time high of $0.50 in September 2021.This proposed settlement marks a crucial moment for Mango Markets DAO as it navigates the complex regulatory landscape surrounding decentralized finance (DeFi) and seeks to move forward from a tumultuous period in its history.
