US SEC Settlement: Mango DAO Rejects Proposal To Pay Commission

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As a seasoned crypto investor with a decade of experience navigating the volatile and ever-changing landscape of digital assets, I must admit that the recent decision by the Mango DAO to reject the proposed settlement with the US Securities and Exchange Commission (SEC) has left me both intrigued and concerned.

The Mango Decentralized Autonomous Organization (DAO) has declined to contribute $700,000 towards Mango Market’s settlement with the U.S. Securities and Exchange Commission (SEC), concerning their unregistered sale of MNGO tokens. This decision was made in light of Crypto.com’s recent legal action against the SEC after receiving a Wells Notice, an official warning from the regulatory body towards the crypto exchange.

Mango DAO Rejects Proposal To Pay US SEC As Part Of Settlement

According to Realms data, the Mango Decentralized Autonomous Organization (DAO) has declined a proposal to contribute $700,000 towards a settlement with the U.S. Securities and Exchange Commission (SEC). Earlier, Mango Labs, Blockworks Foundation, and the DAO had reached an agreement with the regulatory body to pay this amount and eliminate the MNGO tokens due to the charges filed by the SEC for selling unregistered cryptocurrency assets.

The aim of the proposal was to give permission to the representative of the Decentralized Autonomous Organization (DAO) to withdraw the $669,684 kept in a secure deposit (escrow), and use it to pay off the debt owed to the Securities and Exchange Commission (SEC) as part of the settlement agreement. However, this proposal did not pass as it required an additional 52.2 million Yes votes to be successful. The total number of Yes votes for the proposal was only 27,774,650.

It’s worth noting that during a recent post on X, smart contract developer Henry shared some intriguing insights: The proposal had amassed over 100 million votes in its favor. However, just 5 hours prior to the voting deadline, 80 million of those votes were withdrawn.

As a seasoned investor with over two decades of experience in the financial markets, I have witnessed numerous legal battles between regulatory bodies and innovative fintech companies. In this context, I find it intriguing to observe Crypto.com taking on the U.S. Securities and Exchange Commission (SEC) through a lawsuit. Having navigated similar situations in my career, I can appreciate the challenges these companies face when trying to push the boundaries of innovation while adhering to complex regulatory requirements.

It’s unclear whether Crypto.com’s choice to challenge the SEC played a role in the DAO’s decision to reject the proposition.

Top Crypto Settlements By US Regulators

As a researcher, I’ve been closely tracking the developments in the crypto space, and it’s clear that U.S. regulatory bodies like the SEC have taken significant steps to enforce regulations within the industry. A recent report by CoinGecko reveals that these enforcement actions have resulted in crypto companies collectively settling a staggering $32 billion with U.S. regulators. The largest of these settlements, amounting to $12.70 billion, was reached between FTX and Alameda with the U.S. Commodity Futures Trading Commission (CFTC). In this case, the defunct crypto firms have agreed to reimburse this substantial sum to their customers and those who were victims of fraud.

In simpler terms, Celsius, a bankrupt crypto lender, has agreed to pay a fine of $4.7 billion to the U.S. Securities and Exchange Commission (SEC). This is the second largest crypto-related settlement so far this year. The Terraform Labs had previously reached a civil settlement worth $4.3 billion with the SEC earlier in the year, which comes in third place. As reported by CoinGecko, these two settlements, along with others from U.S. regulators, total an impressive $19 billion in crypto-related fines this year.

US SEC Settlement: Mango DAO Rejects Proposal To Pay Commission

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2024-10-09 17:48