PANews reported on October 10 that according to DLNews, just a few weeks after reaching a lawsuit settlement with the U.S. Securities and Exchange Commission, Mango Labs, the company behind the Mango Markets protocol, also filed its own legal action. The lawsuit was filed in Puerto Rico on October 7, accusing John Kramer and Max Schneider, senior contributors to Mango DAO, of stealing more than $10 million from the DAO at the expense of other members during the Avraham Eisenberg trial. The lawsuit stated: "The defendant secretly purchased MNGO tokens (333 million) from FTX, manipulated the MNGO market, artificially raised the price of its tokens, and sold them to Mango DAO at a higher price through a proposal, in violation of its fiduciary duty." Kramer and Schneider denied any wrongdoing.
In addition to the lawsuit, on-chain evidence suggests that Kramer and Schneider’s trading company CKS Systems was behind the acquisition of MNGO tokens. The lawsuit also alleges that Kramer and Schneider attempted to block Mango Labs’ access to legal funds after being accused of misappropriating funds. “They threatened to prevent Mango Labs from providing funds to defend Mango DAO’s legal rights, including against Eisenberg,” the lawsuit states. In addition, after Mango Labs reached a settlement with the SEC, Schneider proposed a DAO proposal to give himself 60 million MNGO tokens from the DAO treasury, in violation of the terms of the SEC settlement. Whether this move will affect the settlement agreement, which is subject to court approval, remains to be seen.
Earlier yesterday, it was reported that Mango failed to pass its proposal to accept a settlement with the US SEC because someone withdrew the proposal.
