The U.S. Securities and Exchange Commission (SEC) announced today that it has settled charges against Mango DAO, Blockworks Foundation, and Mango Labs LLC for their involvement in the unregistered sale of crypto assets on the Mango Markets platform.
The SEC’s enforcement action targets the sale of MNGO governance tokens and alleges that these entities failed to comply with federal securities laws, depriving investors of essential legal protections.
US SEC Settles With Mango Markets
According to the SEC, Mango DAO, a decentralized autonomous organization, and Blockworks Foundation, a Panamanian entity, raised more than $70 million from unregistered offers and sales of MNGO tokens beginning in August 2021.
The tokens, marketed as governance tokens of the Mango Markets platform, were sold to hundreds of investors worldwide, including in the United States. The SEC’s complaint argues that by bypassing registration requirements, the entities did not provide investors with the disclosures and safeguards mandated by U.S. securities laws.
MNGO tokens were promoted as governance tokens intended to provide holders with decision-making power within the Mango Markets ecosystem. However, the SEC maintains that their sale should have been registered under the Securities Act of 1933, as the tokens were deemed to be securities.
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