SEC Cracks Down on Unregistered Brokerage Activities by Mango Markets The U.S. Securities and Exchange Commission (SEC) has reached a settlement with Mango DAO, Mango Labs, and Blockworks Foundation, resolving allegations that the decentralized exchange Mango Markets operated as an unregistered broker-dealer. As part of the settlement, the defendants have agreed to: Destroy all remaining MNGO tokens. Request cryptocurrency exchanges to cease trading MNGO. * Pay a $700,000 penalty. The settlement requires court approval. This action by the SEC follows an earlier settlement between Mango DAO and the Commodity Futures Trading Commission (CFTC) over similar allegations. Implications for Investors The SEC's settlement with Mango Markets highlights the importance of complying with securities regulations. Failure to register as a broker-dealer can result in significant penalties and other enforcement actions. Investors should be aware of the risks associated with investing in unregistered platforms. Before investing, it is crucial to conduct thorough research and consider seeking professional advice.