On Friday, the U.S. Securities and Exchange Commission (SEC) announced that it had filed securities trading charges against the teams behind Solana DeFi-powered platform Mango Markets (Mango DAO, Mango Labs and Blockworks Foundation) after a lengthy investigation.
The charges have already been settled, and the judgment was approved by MNGO token holders through Mango #DAO in August. The companies paid a combined civil penalty of approximately $700,000 and agreed to
destroy MNGO tokens, request the removal of MNGO tokens from the trading platform, and refrain from requesting the trading platform to allow MNGO to trade, offer and sell MNGO tokens.
Mango DAO and the organization behind the tokens, Blockworks Foundation, are accused of offering and selling MNGO tokens, while platform developer Mango Labs and Foundation are accused of acting as unregistered brokers.
From the beginning of our #cryptocurrency program, we believe that the label "DAO" does not change the reality of who is behind the projects, what activities they engage in, and whether they need to be registered. Securities brokerage using automated or open source software also does not change the nature of the activity.
If you engage in securities brokering, you must be registered or exempt, regardless of the technology you use or the type of legal entity.
Editor's note: This article is breaking news and will be updated as more information becomes available.
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