Mango Markets ‘progressively’ settles $500k CFTC settlement amid investigation
Solana-based decentralized exchange Mango Market may soon issue another $500,000 fine — this time to settle allegations brought by the Commodity Futures Trading Commission.
In a Sept. 22 filing by Mango Markets' legal representatives for the Mango DAO, the attorneys cited an “ongoing and non-public” investigation from the CFTC. They suggested it cost half a million dollars to finish.
According to the proposal and additional disclosures on Mango Markets' Discord server, the decentralized exchange was charged by the CFTC for failing to register as a commodity exchange, illegally providing services to clients in the US, and failing to implement adequate KYC measures.
A DAO representative said that due to the confidentiality of the settlement and the ongoing investigation by the CFTC, they could not publicly disclose the full details of the case.
However, the representative confirmed that “the CFTC will refrain from filing any litigation against the DAO regarding these allegations” in order to settle the Mango DAO members.
The resolution states that Mango will not admit or deny any wrongdoing if the DAO termination is approved by the CFTC commissioners.
At the time of publication, the proposal is charting a straight course for approval with 123,475,000 votes in favor from DAO members alone.
The proposal received direct support from Mango Dao members. Source: Mango Dao
This is the second time in a month that Mango Dao has offered to pay a six-figure sum.
Related: Eisenberg Wants Mango Markets Fraud Convictions Overturned
In the year On August 19, The DAO voted to settle a settlement with the SEC over allegations it violated US securities laws. A week later, On August 26, The DAO handed over $670,000 USD Coin (USDC) to the regulator to end an ongoing investigation into claims it sold native MNGO tokens in 2021 as an unregistered security.
Ever since Solana-based DEX fell victim to a $110 million exploit in October 2022, trader Avraham Eisenberg has been fighting against the use of the protocol for personal gain. This led to Eisenberg being indicted in April on charges of fraud and market manipulation.
Following the exploit, the SEC, DOJ and CFTC launched investigations into Eisenberg and began to closely monitor mango markets. The SEC said Mango DAO, Mango Labs and Blockworks Foundation violated various securities laws.
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