According to BlockBeats, on September 28, the U.S. SEC filed charges against the operating entity of Mango Markets, alleging that it provided and sold MNGO governance tokens without registration.

The SEC complaint alleges that starting in August 2021, Mango DAO and the Panamanian entity Blockworks Foundation raised more than $70 million from investors around the world through an unregistered offer and sale of MNGO tokens.

The SEC also alleges that Blockworks Foundation and Mango Labs operated as unregistered brokers since at least August 2021, soliciting users to trade securities, providing investment advice and valuations, and assisting customers in opening accounts and handling funds.