The Solana (SOL)-based decentralized exchange (DEX) Mango Markets is shuttering after dealing with a slew of regulatory issues last year.
The DEX announced its closure on Saturday, issuing proposals designed to make borrowing on the platform economically unviable.
“Mango Markets will be shutting down. It is time for users to close their positions.”
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) launched dual investigations into Mango Markets after crypto trader Avraham Eisenberg exploited the protocol for $110 million worth of digital assets in 2022.
The SEC alleged that the DEX’s decentralized autonomous organization (DAO) skirted registration provisions and deprived investors of critical protections.
The regulator said Mango DAO raised more than $70 million from unregistered offers and sales of MNGO tokens, and it also alleges that the affiliated entities Blockworks Foundation and Mango Labs LLC engaged in unregistered broker activities.
Mango DAO, Blockworks Foundation and Mango Labs agreed in September to pay the SEC a nearly $700,000 civil penalty, though they didn’t admit or deny the allegations. They also agreed to destroy their MNGO tokens and request the removal of MNGO tokens from trading platforms. Additionally, the DAO voted to propose a $500,000 settlement with the CFTC.
Last April, a jury convicted Eisenberg of commodities fraud, commodities market manipulation and wire fraud. His sentencing hearing was recently delayed until April 2025.
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