Mango DAO Rejects SEC Settlement Proposal: What Happened?

Mango DAO's Proposal to Settle with SEC Fails

In a recent development reported by PANews, the proposal put forth by Mango DAO to settle with the U.S. Securities and Exchange Commission (SEC) has ultimately failed. This proposal experienced a brief moment of approval just four hours prior to the deadline, only to see support dissipate and lead to its downfall.

Background on Mango DAO and SEC Charges

Mango DAO, along with Mango Labs and the Blockworks Foundation, had previously come to an agreement with the SEC after facing accusations of illegally selling MNGO tokens. This settlement included a hefty fine totaling $700,000 and a stipulation to destroy all outstanding MNGO tokens. However, this settlement is still pending court approval.

Conditions of the Settlement

As part of the agreement with the SEC, Mango DAO is not permitted to take any further actions or issue public statements that either deny the SEC’s allegations or imply that these allegations lack a factual basis.

Proposal Details and Financial Implications

The purpose of the failed proposal was to enable Mango DAO to release $669,684 currently held in escrow and to pay the SEC to satisfy the final judgment amounts owed by Mango DAO, Blockworks, and Mango Labs.

Cease of MNGO Token Activities

As part of the actions stemming from this case, all activities related to the offering, selling, or reselling of MNGO tokens through interstate commerce or on the Mango Markets protocol must cease immediately.

What This Means for the Future of Mango DAO

The failure of the proposal adds uncertainty to Mango DAO's future, especially in navigating regulatory landscapes. The DAO must now reassess its strategies in light of the SEC's scrutiny and how it plans to handle the fallout from the halted settlement process.

Conclusion

As developments unfold regarding the Mango DAO and SEC situation, stakeholders and investors will be closely monitoring how Mango DAO will respond to these challenges and what steps they will take to comply with regulatory requirements while protecting their interests.