Mango Market settlement: $500K fine for CFTC probe

Mango Market settlement: $500K fine to prevent CFTC probe

Solana -based decentralized exchange Mango Markets may soon pay a hefty $500,000 fine to settle charges brought by the Commodity Futures Trading Commission (CFTC). According to a recent proposal submitted by Mango Markets’ legal team to its decentralized autonomous organization (DAO) on September 22, the exchange is under an ongoing investigation by the CFTC. The proposal suggests paying $500,000 to end the investigation, which remains confidential and nonpublic.

Mango Market Proposed Settlement and CFTC Allegations 

The CFTC alleges that Mango Markets failed to register as a commodities exchange, provided illegal services to U.S. customers, and did not enforce adequate Know Your Customer (KYC) measures. Despite these accusations, the proposal notes that the DAO would neither admit nor deny any wrongdoing if the settlement is accepted. The aim of the payment is to avoid any future legal action from the CFTC concerning these allegations. As the investigation is still ongoing, the full details remain undisclosed, but the DAO representatives are confident the settlement will prevent any litigation.

Mango market Settlement: Strong DAO Support

Mango DAO members have shown strong support for the proposal, with 123,475,000 votes cast in favor of the $500,000 settlement, and none against. 

This is the second time in a short period that Mango DAO has agreed to a six-figure settlement to resolve regulatory matters. In August, the DAO paid $670,000 to the SEC over claims that it had sold its native token, MNGO, as an unregistered security in 2021. Mango Markets has been under scrutiny since it was exploited for $110 million in 2022, leading to legal actions against the trader responsible, Avraham Eisenberg, as well as regulatory investigations by the SEC, DOJ, and CFTC. Despite these challenges, Mango Markets remains focused on resolving its legal issues and moving forward.

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