Originally published on: September 24, 2024
Solana-based Mango Markets is in hot water with the United States Commodity Futures Trading Commission (CFTC), facing a potential $500,000 fine to settle allegations. The decentralized exchange’s legal representatives have brought forth a proposal to the Mango DAO, suggesting the hefty settlement to resolve the ongoing investigation by the CFTC.
The CFTC’s investigation revolves around accusations of Mango Markets failing to register as a commodities exchange, providing services to US customers illegally, and lacking sufficient Know Your Customer measures. While the full details of the matter remain confidential due to the ongoing nature of the investigation, the proposed settlement aims to prevent any litigation against the DAO by the CFTC.
Notably, this is not the first time Mango DAO has found itself in such a situation. Previously, the DAO settled with the Securities and Exchange Commission over violations of US securities laws. This recent proposal has garnered significant support from DAO members, signaling a willingness to resolve the matter swiftly.
The troubles for Mango Markets began after a significant exploit in 2022, leading to regulatory scrutiny from various US authorities. The saga continues with the latest settlement proposal, underlining the challenges faced by decentralized exchanges in navigating regulatory landscapes.
As Mango Markets grapples with regulatory issues, the future remains uncertain for the Solana-based DEX. Stay tuned for updates on this evolving situation.
