A decentralized finance (DeFi) platform based on the smart contract platform Solana (SOL) is drafting a proposal to reach an agreement with the U.S. Securities and Exchange Commission (SEC).
Mango Markets (MNGO), a decentralized autonomous organization (DAO), has voted to settle with the SEC in a new community proposal despite the regulator not formally charging the decentralized exchange (DEX) protocol with any criminal charges.
However, the SEC and other federal agencies began investigating Mango Markets after cryptocurrency trader Abraham Eisenberg exploited the protocol to make $110 million in 2022.
According to Mango DAO, the SEC has accused the company of violating several provisions of the Securities Act of 1933 and 1934.
The DAO added that if the SEC accepts the settlement, it would include paying a civil penalty of $233,228 and agreeing to “cease all offers, sales, or resales of MNGO tokens on the Protocol through any instrument or device of interstate commerce within the United States.”
Additionally, the Protocol agrees to destroy or render unusable all MNGO tokens held within 10 days of the SEC accepting the terms.
“To resolve the SEC’s allegations against the DAO, this proposal would authorize CyberByte sp. zoo, acting as the representative of the DAO, to make a binding settlement offer to the SEC on behalf of the DAO, including the payment of a civil penalty, a preliminary injunction, and covenants, and to execute a settlement document on behalf of the DAO and, if accepted by the SEC, to make the covenants required by the settlement.
As part of the settlement proposal, the DAO will neither admit nor deny the SEC’s allegations.”
Eisenberg was charged and convicted in 2023 of artificially inflating the price of MNGO and borrowing large amounts of digital assets from DEXs to exploit unrealized profits from long positions in the token.
At the time of writing, MNGO is trading at $0.0162, up 6% over the last 24 hours.
Don’t miss out – subscribe to receive email notifications straight to your inbox
Price check task
Follow us XFacebook and Telegram
Surfing the Daily Hodl Mix
 
Disclaimer: The opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investment in Bitcoin, cryptocurrencies or digital assets. Your transfers and transactions are at your own risk and any losses you may incur are your own responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets and The Daily Hodl is not an investment advisor. The Daily Hodl participates in affiliate marketing.
Generated image: Midjourney