SEC Charges Mango DAO Over Unregistered MNGO Token Sale, Settlement Reached

On September 28, COINOTAG reported that the U.S. Securities and Exchange Commission (SEC) had reached a settlement with Mango DAO and Blockworks Foundation. These entities were charged with conducting an unregistered offering of the “MNGO” token crypto assets. The SEC’s settlement also involved Blockworks Foundation and Mango Labs LLC, accused of unregistered brokerage activities tied to the Mango Markets platform.

As per the SEC’s complaint, starting in August 2021, Mango DAO—a supposed decentralized autonomous organization—and Blockworks Foundation based in Panama, amassed over $70 million globally, including from U.S. investors, through the unregistered sale of MNGO tokens, which are considered governance tokens for Mango Markets. Both entities have now agreed to a settlement with the SEC. Key terms of this settlement include adherence to the injunction and order, a civil penalty payment of nearly $700,000, the destruction of MNGO tokens, their removal from trading platforms, and a commitment to cease soliciting trading platforms for MNGO token activities.