Mango DAO votes on settlement offer with SEC The offering involves the destruction of all MNGO governance tokens of the DAO. Voting ends on Thursday.
Mango DAO members support the proposal to destroy the MNGO governance token and pay a hefty fine in a proposed settlement with the US Securities and Exchange Commission.
On Monday, the legal representative of Mango DAO, the digital collective that manages the Mango Markets Protocol, enough proposal A vote. It has already met the threshold of votes needed to pass.
“This proposal, if approved, would authorize the DAO representative to propose to the SEC a settlement offer that would include a civil penalty payment in the amount of $223,228,” the proposal states.
In addition, the DAO will be required to destroy all MNGO tokens in its possession, any it may acquire in the future, and petition exchanges to delist the MNGO within 30 days.
While DAO appears eager to present the settlement to the SEC, there is no guarantee the regulator will accept it.
MNGO is the governance token of Mango DAO. Holders get the right to submit and vote on proposed changes to the protocol and how to allocate assets from the DAO's treasury.
Most of the MNGO is held in the Mango DAO treasury.
Mango markets are projected to reach $110 million in 2022
Still, there are 1.3 billion According to CoinGecko, there are about $19.5 million worth of MNGO tokens in circulation on the open market data.
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The company CyberByte sp. Zoo is the Mango DAO representative responsible for the solution proposal.
In Mango DAO Discord — messaging app — DAO developer Adrian Brzezinski Confirmed He has a cyberbite sp. Jr
Brzeziński did not immediately respond to a request for comment.
Regulator inquiries
Mango markets are one of Solana's most famous trading venues.
However, in October 2022, convicted crypto trader Avraham Eisenberg hacked the protocol and stole $110 million.
In January 2023, SEC Charges have been filed Eisenberg was accused of fraud and market manipulation in connection with the mango market raid. He was found guilty in April.
In the Mango DAO settlement proposal, Brzeziński said US regulators “conducted their own inquiries into mango markets” after Eisenberg was indicted last year.
As these findings are not public, it is not known whether the token destruction offering was suggested by the regulator or preempted by the DAO.
In May, the Mango DAO voted to allow some holders to trade $10 million worth of MNGO for USDC stablecoins held in the DAO treasury.
Some Mango DAO members accused two senior DAO contributors, John Kramer and Max Schneider, of buying MNGO tokens through an outside company and using them to vote and make a $3 million profit.
At the time, Schneider said NewsHe “didn't lie to anyone,” and everything he did was in the best interests of the DAO.
He declined to comment on the SEC settlement offer.
SEC fine
The DAO's proposal offers to pay fines in lieu of litigation, but neither denies nor admits to the SEC's allegations.
The Mango DAO is not the only company implicated in alleged securities violations.
Also listed are Mango Labs, the developer of the Mango Markets protocol, and the Blackworks Foundation, which helps write and maintain the protocol code.
Each entity will be fined $223,228, with the proposed payment from Mango DAO coffers to the SEC totaling $669,684.
Mango DAO holds $8.48 million worth of stablecoins and other crypto assets in DeFillama data shows
Voting will end on Thursday.
Osato Awan-Nomayo Our Nigeria based DeFi representative. He covers DeFi and technology. To share tips or information about articles, please contact him here [email protected].
Tim Craig DeFi Correspondent at News. Got a tip? Email him [email protected].
Related TopicsMango Market Centralized Autonomous Organization (DAO)Solana