Solana-Based DEX Mango Markets Shutting Down Following SEC and CFTC Enforcement Actions

Solana (SOL)-based decentralized trade (DEX) Mango Markets is closing its doorways after coping with a slew of regulatory points final 12 months.

The DEX introduced its closure on Saturday and issued proposals geared toward making lending on the platform economically unviable.

“Mango markets will shut. It’s time for customers to shut their positions.”

The US Securities and Alternate Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC) have launched a twin investigation into Mango Markets after crypto dealer Avraham Eisenberg exploited the protocol for $110 million value of digital belongings in 2022.

The SEC alleged that the DEX’s Decentralized Autonomous Group (DAO) circumvented registration provisions and disadvantaged traders of essential protections.

The regulator stated Mango DAO has raised greater than $70 million from unregistered presents and gross sales of MNGO tokens, and in addition alleges that associates Blockworks Basis and Mango Labs LLC are engaged in unregistered brokerage actions.

Mango DAO, Blockworks Basis and Mango Labs agreed in September to pay the SEC a civil penalty of almost $700,000, though they neither admitted nor denied the allegations. Additionally they agreed to destroy their MNGO tokens and request the removing of MNGO tokens from buying and selling platforms. Moreover, the DAO voted to settle $500,000 with the CFTC.

Final April, a jury convicted Eisenberg of commodities fraud, commodity market manipulation and wire fraud. His sentencing listening to was not too long ago postponed till April 2025.

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