Mango Markets, a decentralized crypto exchange, is grappling with a potential six-figure settlement with the Commodity Futures Trading Commission (CFTC) following allegations of operating without proper registration and failing to verify customer identities. The exchange, which allows trading of perpetual futures contracts, has faced significant regulatory scrutiny and a multimillion-dollar hack in the past.
On Sunday, Mango Markets’ legal team announced a proposed resolution, suggesting that its governing body, Mango DAO, pay a $500,000 fine to the CFTC. While the DAO would neither admit nor deny wrongdoing, this settlement could help avoid protracted litigation. However, it requires approval from MNGO token holders, and as of now, the proposal is likely to pass before needing CFTC commissioner acceptance.
This isn’t Mango DAO’s first regulatory hurdle; last month, it proposed a six-figure settlement to the SEC for selling unregistered securities, paying nearly $700,000 in stablecoins as a result. The exchange’s troubles began in late 2022 when market manipulator Avi Eisenberg executed a scheme that severely depleted its assets, drawing attention from multiple U.S. regulators.
Mango DAO has incurred significant legal expenses—over $148,000 in legal fees and an additional $78,000 navigating the regulatory landscape, according to updates shared on its Discord server. The CFTC has not yet commented on the situation.
Related Topics:
