New York, Friday, September 27, 2024 – The U.S. Securities and Exchange Commission (SEC) announced a settlement with Mango DAO, Mango Labs LLC, and Blockworks Foundation on Friday over allegations that the MNGO token was an unregistered security. The settlement includes the destruction of MNGO tokens, a request to crypto exchanges to halt trading the tokens, and a $700,000 payment. This agreement, still awaiting court approval, follows a Mango DAO vote to accept the settlement.
In a separate vote, Mango DAO unanimously approved a settlement proposal with the Commodity Futures Trading Commission (CFTC) earlier this week.
Since its launch in 2021, Mango DAO has sold $70 million worth of MNGO tokens. However, the project’s future remains uncertain following the token destruction. This comes after a series of challenges, including a $110 million hack in 2022 by Avraham Eisenberg, who was convicted of fraud earlier this year.
SEC Acting Crypto and Cyber Unit Chief Jorge Tenreiro emphasized that DAOs and their intermediaries must adhere to regulatory requirements, stating that automated or open-source software does not exempt them from registering.
