According to PANews, Mango failed to pass a proposal to accept the SEC settlement. The proposal was passed only 4 hours before the deadline, but someone later withdrew the vote in support of the proposal, so the proposal failed.

Earlier news, Mango DAO agreed to settle with the U.S. Securities and Exchange Commission after being accused of illegally selling MNGO tokens. Mango Labs, Mango DAO and Blockworks Foundation agreed to settle the charges and pay a total fine of $700,000. The three companies also agreed to destroy their MNGO tokens. The settlement agreement still needs court approval.

As part of the settlement, The DAO shall not take any action or permit any public statement to be made that directly or indirectly denies any of the SEC’s allegations or creates the impression that such allegations are without factual basis. The proposal seeks to authorize The DAO Representative to release $669,684 in funds currently held in escrow and pay it to the SEC for amounts due under the final judgment against The DAO, Blockworks, and Mango Labs. All offers, sales, or resales of MNGO tokens on the Mango Markets Protocol by means or instrumentality of U.S. interstate commerce shall cease immediately.