The SEC settles with Mango Markets over MNGO token sales

• The SEC announced it settled with Mango Markets over the sale of unregistered tokens in a $70 million coin offering
• Mango DAO and Blockworks Foundation have agreed to pay $700,000 in civil penalties
• The settlement will also see Mango Markets destroy the MNGO tokens and request exchanges to delist them

The US Securities and Exchange Commission (SEC) has charged Mango DAO and Blockworks Foundation for offering and selling unregistered crypto assets.

The SEC announced the charges on September 27. They relate to the sale of MNGO, the governance token of Mango Markets. The platforms also acted as unregistered brokers for the DeFi platform.

In its complaint filed at the US District Court for the Southern District of New York, the SEC alleged the three entities had violated US securities laws and the broker registration provisions.& &

According to the SEC, Mango DAO and Blockworks Foundation, an entity registered in Panama, raised over $7 million from sales of MNGO tokens. The sales, which started in August 2021, were offered to investors worldwide, including the US.

The SEC says it has settled with the firms, which have agreed to injunctions and orders and will pay a total of $700,000 in civil penalties.

Destroy MNGO tokens

As part of the settlement, Mango DAO, Mango Labs, and the Blockworks Foundation will also destroy the MNGO tokens. The parties will also ask trading platforms to delist MNGO as well as not solicit any crypto exchanges in relation to allowing for the trading of MNGO tokens.

These injunctions and penalties will take effect once approved by the court.

Mango Markets hack

Earlier this year, Mango Markets announced a $250,000 allocation in USDC, with the funds set aside to help navigate the growing regulatory scrutiny it faced. The platform had suffered a major exploit in October 2022, with the attacker draining over $100 million in digital assets from the platform.

The hacker, Avraham Eisenberg, was later arrested and charged over the exploit.

However, that exploit appears to have shone the regulatory spotlight on Mango Markets, leading to the latest SEC charges and settlement. Mango Markets offered to have a settlement deal with the SEC in August.

The post The SEC settles with Mango Markets over MNGO token sales appeared first on CoinJournal.

You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.