Breaking: US SEC Settles With Mango Markets For Unregistered Crypto Sales

As a seasoned financial analyst with over two decades of experience, I’ve seen my fair share of regulatory action against entities involved in unregistered securities sales. The recent settlement between the U.S. Securities and Exchange Commission (SEC) and Mango DAO, Blockworks Foundation, and Mango Labs LLC is no exception.


Today, it was disclosed that the U.S. Securities and Exchange Commission (SEC) has reached an agreement with Mango DAO, Blockworks Foundation, and Mango Labs LLC, as these entities were implicated in the unauthorized distribution of digital assets via the Mango Markets platform without proper registration.

The Securities and Exchange Commission (SEC) is taking action against the sale of MNGO governance tokens, claiming that the involved parties did not adhere to federal securities laws. This situation, according to the SEC, has left investors without crucial legal safeguards.

US SEC Settles With Mango Markets

In August 2021, the Mango DAO, a decentralized organization, and Blockworks Foundation, based in Panama, gathered over $70 million through token sales of MNGO that were not registered, as reported by the SEC.

These tokens, promoted as control tokens for the Mango Markets platform, were purchased by numerous international investors, including those in the United States. The Securities and Exchange Commission (SEC) alleges that by not adhering to registration rules, these entities failed to supply U.S. investors with the required disclosures and protections as mandated by American securities laws.

The MNGO tokens were marketed as tokens granting governance rights to users in the Mango Markets community, enabling them to make decisions within this ecosystem. Nevertheless, the Securities and Exchange Commission (SEC) argues that these tokens should have been registered under the Securities Act of 1933 because they are classified as securities.

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2024-09-27 22:32