- Mango Markets faced a settlement with the SEC for selling unregistered tokens and paid a $700,000 fine.
- The platform was hit by a major exploit in 2022, losing over $100 million, which further damaged its reputation.
- After months of legal issues, Mango Markets decided to close, ending its operations in early 2025.
Mango Markets, a decentralized exchange (DEX) on the Solana blockchain, is closing down after facing legal problems. Which is including a settlement with the US Securities and Exchange Commission (SEC). The platform was launched in August 2021 and was meant to provide fast and affordable trading and borrowing using its MNGO token.
However, things took a turn when the SEC filed charges against Mango DAO, the platform’s governing body, in September 2024. The SEC accused Mango of breaking securities laws by selling unregistered MNGO tokens during a fundraising round in 2021. Which raised over $70 million. As part of the settlement, Mango agreed to pay a $700,000 fine, get rid of its MNGO tokens. And have them taken off exchanges. This was a big hit to the platform, which had already been having trouble after a major hack in 2022.
Mango Faces Legal and Financial Struggles
In October 2022, Mango Markets was hit by a big exploit when trader Avraham “Avi” Eisenberg manipulated the price of MNGO and stole over $100 million from the platform. Eisenberg returned $67 million after a community vote, but kept $40 million. This led to legal action, and Eisenberg was arrested and charged with fraud and market manipulation. His actions, along with the ongoing legal issues, caused a huge drop in user trust and the platform’s value. Which went from $210 million in November 2021 to just $9 million by early 2025.
The End of Mango Mar
Mango Markets decided to close down after a proposal was passed to make borrowing and lending on the platform no longer possible. Everyone in the community agreed to the proposal, and it will take effect on January 13, 2025. The decision to shut down came after months of legal troubles, including the settlement with the SEC and other regulatory issues.
The Mango DAO, which had been actively voting on the platform’s future, decided to close the platform to avoid further complications. Many of Mango’s contributors expressed a desire to move on from the ongoing legal battles and the financial decline. As the platform gets ready to shut down, it marks the end of a big project that had trouble dealing with the challenges of decentralized finance and increasing pressure from regulators.
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