Mango Markets DAO proposes a $223K SEC settlement to resolve legal issues.
Over 106M votes support Mango DAO's settlement proposal with SEC.
Mango DAO plans to cease MNGO token transactions in the US post-settlement
The Solana-based Mango Markets DAO, the decentralised exchange's governing body, has started addressing the allegations of violating U.S. securities laws. The DAO has launched a vote on the so-called “SEC Settlement Offer Proposal” that contains many measures regarding the said problems.
Terms and Implications of Settlement
The proposed settlement requires Mango Markets DAO to pay a $223,228 fine from its treasury, a body with almost $2 million in assets. The DAO also intends to cease all trading, sales, and resales of MNGO tokens in the United States of America and request that these tokens be removed from trading platforms.
https://twitter.com/Realms_DAOs/status/1825859730373275938
This approach intends to meet all the requirements set by the regulation without accepting or denying any of the claims made by the SEC. The community's response to the settlement proposal has been overwhelmingly positive, with early voting results showing that a majority is in favour.
With more than 106 million votes cast, the proposal has already surpassed the required quorum, reflecting strong community backing for a resolution. This support underscores the DAO's commitment to transparency and regulatory compliance.
Regulatory Context and DAO’s Compliance Efforts
The security breach, which happened in October 2022, where the platform lost a lot of money and saw many people lose their funds, has not been very helpful for Mango Markets, the SEC has been on its neck.
This incident revealed weakness in the platform and led to an extensive enquiry by the Security and Exchange Commission, Department of Justice and Commodity Futures Trading Commission. The DAO’s proactive settlement proposal is part of some measures to strengthen the organization of its work and compliance with the US legislation concerning securities.
While waiting for the SEC’s decision on the settlement proposal, the DAO is also ready for other possibilities. Solving this regulatory problem is critical for Mango Markets and its role in the DeFi space. At the same time, the market has shown a rather reserved attitude, with the MNGO token prices slightly rising on the day the proposal was made.
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