Mango Markets, a Solana-based decentralized finance (DeFi) platform that lost over $110 million in a 2022 exploit by Avraham Eisenberg, is considering a settlement proposal with the U.S. Securities and Exchange Commission (SEC). The regulator had accused Mango Markets of violating U.S. securities laws.
The platform’s governing body, Mango DAO, opened voting on Monday for the “SEC Settlement Offer Proposal.” If approved, the proposal would require Mango to pay $223,228 in fines to the SEC, destroy its remaining MNGO tokens, and request delisting from trading platforms. The proposed settlement aims to resolve the SEC’s allegations while avoiding litigation, with Mango neither admitting nor denying any wrongdoing.
The vote has already surpassed the quorum requirement, with over 106 million votes cast, all in favor of accepting the settlement.
This SEC probe is just one of several regulatory challenges facing Mango Markets. Earlier this year, reports surfaced that the platform was under investigation by the Department of Justice and the Commodity Futures Trading Commission, though those inquiries are not addressed in the current settlement proposal.
Once a leading DeFi protocol on Solana, Mango has faced significant challenges since Eisenberg’s exploit, which he described as a legitimate trading strategy. Eisenberg was found guilty of commodities fraud, commodities manipulation, and wire fraud. Despite his conviction, he has pushed for the verdict to be overturned and is seeking a new trial.
The outcome of this DAO vote could be a crucial step toward resolving Mango Markets’ regulatory woes.
