By
Mango Markets Closes Following SEC Agreement
https://ift.tt/x6fDBqp
The platform announced on January 11 that it was “shutting down” and advised users to “close their positions.”
This move follows governance proposals that have effectively ended borrowing and lending services on Mango. The changes are set to take effect on January 13th.
Mango DAO Settles SEC Charges, Fined $700K
The closure comes after Mango DAO, the platform’s decentralized governance body, settled with the SEC in September 2024. The SEC filed charges against Mango DAO and the Blockworks Foundation for the sale of unregistered securities. In 2021, Mango raised over $70 million by selling its MNGO governance tokens, violating the Securities Act of 1933. The SEC also accused Mango Labs of operating as an unregistered broker.
As part of the settlement, Mango DAO agreed to pay $700,000 in civil penalties, destroy MNGO tokens, and petition exchanges to delist the tokens. Jorge Tenreiro, head of the SEC’s Crypto Assets and Cyber Unit, stated, “The label ‘DAO’ does not change the reality of who is behind a project.”
Mango Markets will be shutting down
It is time for users to close their positionsMango v4 & Boost are winding down. Most borrowing on Mango will be economically unviable going forward
Proposals are live & become executable on January 13, Monday 8PM UTC
Details below
— Mango (@mangomarkets) January 11, 2025
Mango’s governance body approved a settlement with the SEC for $223,228 and voted to destroy the MNGO tokens. A separate settlement with the U.S. Commodity Futures Trading Commission (CFTC) was also agreed upon for $500,000 in September 2024.
Mango Markets’ Decline Tied to 2022 Exploit and $100M Loss
Founders Maximilian Schneider, Britt Cyr, and John Kramer launched Mango Markets in August 2021 to provide fast, low-cost trading and lending services using MNGO. At its peak, the platform had a total value locked (TVL) of $210 million, but it has since plummeted by 95.7%, now sitting at just $6.66 million, according to DeFiLlama.
The roots of Mango Markets’ shutdown date back to an exploit in October 2022 when crypto trader Avraham “Avi” Eisenberg drained over $100 million from the platform. He exploited a vulnerability in Mango’s protocol, though he returned $67 million after a community vote, keeping $40 million.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post Mango Markets Closes Following SEC Agreement appeared first on Altcoin Buzz.
news
via Altcoin Buzz https://ift.tt/UZPILpn
January 13, 2025 at 07:52AM
January 13, 2025 at 07:55AM
via Altcoin Buzz https://ift.tt/x6fDBqp