According to Blockworks, the SEC announced that it has reached a settlement with Mango Markets, a DeFi platform based on Solana. Mango DAO and the related Blockworks Foundation will pay a fine of nearly $700,000 and destroy its MNGO tokens, while removing Mango Markets' native tokens from other trading platforms.

A month ago, The DAO voted to settle with the SEC. Five days ago, The DAO also voted to settle with the CFTC, which means Mango DAO may have to pay more.

The SEC reiterated its view that SOL is a security in the settlement document, saying that Solana Labs sold SOL to investors in the early days of Solana's existence to fund blockchain development and attempt to increase the value of and demand for SOL.

The SEC noted that Solana Labs transferred 167 million SOL tokens to the Solana Foundation, which is intended to expand and grow the Solana protocol ecosystem. The Solana Foundation did not comment.

The SEC also mentioned Solana’s transaction fee burning mechanism as one of the ways Solana allows investors to expect profits. Solana validators recently voted to remove the priority fee burning mechanism.

If the SEC’s argument succeeds, it will become difficult for U.S. investors to buy and sell SOL, which is an existential issue for the Solana network.