A decentralized finance (DeFi) platform based on the smart contract platform Solana (SOL) is working on a proposed settlement with the US Securities and Exchange Commission (SEC).
In a new community proposal, 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 protocol (DEX) with any crimes.
However, the SEC and other federal agencies launched an investigation into Mango Markets after crypto trader Avraham Eisenberg misused the protocol for $110 million in 2022.
According to the Mango DAO, the SEC has accused them of violating several clauses in the Securities Acts of 1933 and 1934.
The DAO further says that the settlement, if accepted by the SEC, would include a civil penalty of $233,228 and an agreement to “cease all its offers, sales or resales of MNGO tokens on the protocol through the means or instruments of the interstate trade.” in the United States.”
Additionally, the protocol would agree to destroy or otherwise make unavailable all MNGO tokens in its possession within 10 days of the SEC’s acceptance of the terms.
“To resolve the SEC’s allegations against the DAO, this proposal to terminate CyberByte sp. zoo, acting as a representative of the DAO… to make a binding settlement offer to the SEC on behalf of the DAO, which would include the payment of a civil monetary penalty, injunctive relief, and commitments to execute on behalf of the DAO the settlement documents of the DAO, and to carry out the obligations requested 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 in 2023 and subsequently found guilty of commodity fraud after he artificially inflated the price of MNGO and borrowed large amounts of digital assets from the DEX using unrealized profits from his long positions on the token.
MNGO is trading at $0.0162 at the time of writing, up 6% in the last 24 hours.
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