The U.S. Securities and Exchange Commission (SEC) has settled a lawsuit against Mango DAO, Mango Labs LLC, and Blockworks Foundation alleging that the MNGO token was presented as an unregistered security and that the parties engaged in unregistered brokerage services.
According to the agreement, the relevant organizations will destroy MNGO tokens and request cryptocurrency exchanges to cease trading of the token. In addition, they will pay a total of $700,000. This agreement is subject to court approval.
The Mango DAO reportedly held a vote on whether to accept the proposed settlement a little over a month ago. At the same time, the DAO unanimously approved a proposed settlement with the U.S. Commodity Futures Trading Commission (CFTC) earlier this week.
Mango DAO members vote on project decisions using the MNGO governance token, but it is currently unclear how the project will proceed without the token, as its future is uncertain.
Sold $70 million worth of tokens
According to the SEC's statement, Mango DAO and Blockworks Foundation conducted a $70 million MNGO token sale starting in August 2021.
“Any entity that offers securities brokerage activities is required to register with the SEC or be exempt from such registration,” Jorge Tenreiro, the SEC’s Crypto and Cyber Division Director, said in a statement.
Stay tuned for new information.
