Mango Markets faces proposed $500,000 fine from CFTC

Decentralized crypto exchange Mango Markets could face a six-figure settlement from the Commodity Futures Trading Commission (CFTC) after it was accused of failing to register as a commodities exchange, illegally providing services to U.S. customers, and failing to verify customer identities, CoinDesk reported.

Mango Markets’ legal representatives disclosed the investigation on its Discord server and proposed that Mango DAO pay a $500,000 fine. Mango DAO did not admit or deny any wrongdoing but will avoid pending litigation.

The settlement still needs to be approved by the holders of Mango Markets’ governance token MNGO, which is now almost certain to be approved. After that, the CFTC commissioners will also need to accept the settlement proposal.

Last month, Mango DAO filed a six-figure settlement with the Securities and Exchange Commission (SEC) and paid nearly $700,000 in stablecoin fines. In November last year, Mango Markets suffered a market manipulation incident, which led to the liquidation of its assets and the manipulator Avi Eisenberg ended up in prison.

Mango DAO has spent $148,176 and more than $78,000 on legal fees and related costs.