{"id":17363,"date":"2024-09-28T19:01:17","date_gmt":"2024-09-28T16:01:17","guid":{"rendered":"https:\/\/forklog.com\/en\/sec-fines-mango-markets-700000\/"},"modified":"2024-09-28T19:01:17","modified_gmt":"2024-09-28T16:01:17","slug":"sec-fines-mango-markets-700000","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-fines-mango-markets-700000\/","title":{"rendered":"SEC Fines Mango Markets $700,000"},"content":{"rendered":"<p>The organizations managing the DeFi platform Mango Markets, Mango DAO, and Blockworks Foundation have settled charges with the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> over the unregistered sale of securities in the form of MNGO tokens.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Today we filed settled charges against Mango DAO and Blockworks Foundation for engaging in the unregistered offer and sale of crypto assets called \u201cMNGO\u201d tokens. <a href=\"https:\/\/t.co\/UvS5QiAU7X\">https:\/\/t.co\/UvS5QiAU7X<\/a> <a href=\"https:\/\/t.co\/KF9F5urZ11\">pic.twitter.com\/KF9F5urZ11<\/a><\/p>\n<p>\u2014 U.S. Securities and Exchange Commission (@SECGov) <a href=\"https:\/\/twitter.com\/SECGov\/status\/1839769876816163122?ref_src=twsrc%5Etfw\">September 27, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Additionally, Blockworks Foundation and Mango Labs reached an agreement with the regulator regarding claims about their activities as unregistered brokers.<\/p>\n<p>According to the SEC complaint, starting in August 2021, the decentralized autonomous organization and affiliated company raised over $70 million through the sale of the platform&#8217;s governance tokens.<\/p>\n<p>During this period, Blockworks Foundation and Mango Labs actively attracted users to Mango Markets, providing advice, assisting in opening accounts, and facilitating transactions with securities in the form of digital assets. According to the Commission, they deprived investors of \u201ccritical protections\u201d mandated by federal law.<\/p>\n<p>Without admitting or denying the allegations, the platform operators agreed to collectively pay a civil penalty of $700,000. They will also destroy their MNGO holdings and seek the token&#8217;s removal from trading platforms.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cSince the inception of our enforcement program in the crypto industry, we have maintained that the DAO label does not change the nature of who is behind a project, what activities they engage in, and does not exempt them from the obligation to register. Facilitating securities transactions through automated software does not alter the nature of such activity,\u201d stated Jorge Tenreiro, Acting Chief of the SEC\u2019s Crypto and Cyber Unit.<\/p>\n<\/blockquote>\n<p>The settlement with the SEC is subject to court approval.<\/p>\n<p>In August, Mango DAO participants unanimously <a href=\"https:\/\/u1f987.com\/en\/news\/mango-dao-agrees-to-223228-sec-settlement\">supported<\/a> a pre-trial settlement with the regulator, agreeing to a $223,228 penalty, token burn, and delisting of the asset from trading platforms.<\/p>\n<p>Back in October 2022, a group led by Avraham Eisenberg attacked Mango Markets, manipulating the price oracle to extract approximately $116 million in digital assets.<\/p>\n<p>In December of the same year, the U.S. Attorney&#8217;s Office arrested the trader on charges of commodities and securities fraud. He faces up to 20 years in prison. In January 2023, lawsuits against Eisenberg were filed by the <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span> and SEC.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The organizations managing the DeFi platform Mango Markets, Mango DAO, and Blockworks Foundation have settled charges with the SEC over the unregistered sale of securities in the form of MNGO tokens. Today we filed settled charges against Mango DAO and Blockworks Foundation for engaging in the unregistered offer and sale of crypto assets called \u201cMNGO\u201d [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1304,128],"class_list":["post-17363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-fines","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/17363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=17363"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/17363\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/17362"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=17363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=17363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=17363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}