- Mango DAO and partners settled with the SEC over unregistered MNGO token sales.
- The entities agreed to pay $700,000 in penalties to the SEC.
The U.S. Securities and Exchange Commission (SEC) declared a settlement with Solana-based DeFi platform Mango DAO and Blockworks Foundation for selling unregistered crypto assets known as “MNGO” tokens. This settlement also involved Mango Labs, which was accused of engaging in unregistered broker activities related to the sale of various cryptocurrencies on the Mango Markets platform. The SEC’s complaint highlighted that these entities bypassed the federal registration requirements, denying investors the essential protections mandated by law.
Settlement Details and Allegations Against Mango DAO
As part of the agreement, Mango DAO, Blockworks Foundation, and Mango Labs have collectively agreed to pay a civil penalty of $700,000. Additionally, they have “committed to demolishing their MNGO tokens,” requesting their removal from exchanges, and stopping any future promotion of these tokens. Notably, the settlement was reached without any admitting or denial of the allegations, and it remains subject to court approval.
The SEC’s complaint stated that Mango DAO, registered as a decentralized autonomous organization, along with the Panamanian entity Blockworks Foundation, raised over $70 million through unregistered offerings of MNGO tokens starting in August 2021.
This token is a governance asset for the Mango Markets platform, and it sold to numerous investors worldwide, including US. The complaint also stated that Blockworks Foundation and Mango Labs operated as unregistered brokers. They promoted Mango Markets and assisted users in trading securities.
In August 2024, the Mango DAO community voted to settle with the SEC and destroy MNGO tokens. Later, in September, Mango Markets offered $500,000 to settle a separate investigation by the Commodity Futures Trading Commission (CFTC).
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