Mango Markets, a Solana (SOL)-based decentralized exchange (DEX), has proposed a $500,000 settlement with the U.S. Commodity Futures Trading Commission (CFTC).
The DEX’s decentralized autonomous organization (DAO) voted this week to approve a cease and desist agreement that would impose civil fines and various product regulation violations.
If the CFTC agrees, the civil penalty of $500,000 will be paid by Mango DAO and two related entities: Blockworks Foundation and Mango Labs, LLC.
The CFTC and the Securities and Exchange Commission (SEC) launched an investigation into Mango Markets after cryptocurrency trader Abraham Eisenberg exploited the protocol to trade $110 million worth of digital assets in 2022.
In August, Mango DAO members voted to approve the settlement with the SEC, which accused them of violating several provisions of the Securities Act of 1933 and 1934.
If accepted by the SEC, the proposal would include the payment of a civil penalty of $233,228 and an agreement to “cease all offerings, sales, or resales of MNGO tokens on the Protocol through any instrument or device in 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.
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