PANews reported on August 20 that according to CoinDesk, the Solana-based decentralized exchange Mango Markets (MNGO) plans to settle with the U.S. Securities and Exchange Commission (SEC) over allegations of selling unregistered securities. Local time on the 19th, Mango DAO began voting on a governance proposal that requires a $223,228 fine, the renunciation of MNGO token ownership, and a delisting from the exchange. The settlement only involves an investigation by the U.S. Securities and Exchange Commission. Under the plan, Mango DAO faces charges of selling unregistered securities. Mango Labs, the developer of Mango Markets, faces charges of being an unlicensed broker. The related entity Blockworks Foundation (not a media group) also faces similar charges from regulators. Under the proposed settlement, Mango DAO neither admits nor denies wrongdoing. The DAO's treasury currently holds nearly $2 million in USDC and various other assets, the actual value of which is currently unknown.
Currently, in addition to the SEC, Mango Market is also under investigation by the U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC). A U.S. jury previously ruled that hacker Avraham Eisenberg stole $114 million in cryptocurrency through the Mango Market hack, but Avraham Eisenberg objected.