{"id":34767,"date":"2025-01-12T22:15:54","date_gmt":"2025-01-12T19:15:54","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=34767"},"modified":"2025-01-12T22:15:54","modified_gmt":"2025-01-12T19:15:54","slug":"mango-markets-shuts-down-following-sec-settlement","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/mango-markets-shuts-down-following-sec-settlement\/","title":{"rendered":"Mango Markets Shuts Down Following SEC Settlement"},"content":{"rendered":"<p><strong>Solana<\/strong>-based decentralized exchange <strong>Mango Markets<\/strong> has decided to cease operations following a settlement with the U.S. Securities and Exchange Commission (<strong>SEC<\/strong>).<\/p>\n<p>On January 11, Mango Markets announced on its X (formerly Twitter) account that the platform would shut down and urged users to close their positions.<\/p>\n<p>The decision follows governance votes that implemented new rules adjusting interest rates and collateral requirements, effectively ending borrowing and lending on the platform. These changes are expected to take effect on January 13.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2025-01\/01945a02-42a3-706c-84f1-9b03cc6f61da\" alt=\"mango markets\" width=\"753\" height=\"326\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/mango-markets-shuts-down-following-sec-settlement\/#SEC_Settlement\" title=\"SEC Settlement\">SEC Settlement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/mango-markets-shuts-down-following-sec-settlement\/#Legal_and_Financial_Troubles_of_Mango_Markets\" title=\"Legal and Financial Troubles of Mango Markets\">Legal and Financial Troubles of Mango Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/mango-markets-shuts-down-following-sec-settlement\/#Impact_on_Mango_Markets_and_the_Solana_Ecosystem\" title=\"Impact on Mango Markets and the Solana Ecosystem\">Impact on Mango Markets and the Solana Ecosystem<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"SEC_Settlement\"><\/span>SEC Settlement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On September 27, 2024, the SEC filed charges against Mango DAO and Blockworks Foundation for selling unregistered securities. According to the SEC, Mango raised $70 million in 2021 through the sale of <strong>MNGO<\/strong> governance tokens, violating the <strong>Securities Act of 1933<\/strong>. The SEC also accused Mango Labs of operating as an unregistered broker, breaching the <strong>Securities Exchange Act of 1934<\/strong>.<\/p>\n<hr \/>\n<p><strong><em>You Might Be Interested In: <a href=\"https:\/\/coinengineer.net\/blog\/elon-musk-shared-that-memecoin-flew-up-500\/\">Elon Musk Shared, That Memecoin Flew: Up 500%!<\/a><\/em><\/strong><\/p>\n<hr \/>\n<p>As part of the settlement, Mango DAO agreed to pay $700,000 in civil penalties, destroy <strong>MNGO tokens<\/strong>, and request exchanges to delist these tokens.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Legal_and_Financial_Troubles_of_Mango_Markets\"><\/span>Legal and Financial Troubles of Mango Markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Mango Markets&#8217; decision to shut down traces back to an October 2022 exploit. Crypto trader Avraham \u201cAvi\u201d Eisenberg exploited a vulnerability in Mango\u2019s protocol, draining over $100 million from the platform.<\/p>\n<p>Following a community vote, Eisenberg returned $67 million but kept $40 million. He was arrested in December 2022 by U.S. authorities on charges of fraud and market manipulation.<\/p>\n<p>Eisenberg\u2019s sentencing has been postponed multiple times and is now scheduled for April 10, 2025. Facing up to 20 years in prison, Eisenberg may also be subject to civil enforcement actions by the SEC and the Commodity Futures Trading Commission (<strong>CFTC<\/strong>).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Impact_on_Mango_Markets_and_the_Solana_Ecosystem\"><\/span>Impact on Mango Markets and the Solana Ecosystem<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The total value locked (<strong>TVL<\/strong>) on Mango Markets has dropped significantly, from its all-time high of $210 million in November 2021 to just $9 million today\u2014a decline of 95.7%.<\/p>\n<p>This closure highlights the importance of security and regulatory compliance for decentralized exchanges within the Solana ecosystem.<\/p>\n<hr \/>\n<p><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"nofollow noopener\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Solana-based decentralized exchange Mango Markets has decided to cease operations following a settlement with the U.S. Securities and Exchange Commission (SEC). On January 11, Mango Markets announced on its X (formerly Twitter) account that the platform would shut down and urged users to close their positions. The decision follows governance votes that implemented new rules<\/p>\n","protected":false},"author":28,"featured_media":34768,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,657,2],"tags":[5722,1281,10973,847,10972,5721,10971,39,319,3165],"class_list":["post-34767","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-en","category-news","tag-avraham-eisenberg","tag-cftc","tag-crypto-exploit","tag-crypto-news","tag-decentralized-exchange","tag-mango-markets","tag-mngo","tag-sec","tag-solana","tag-tvl"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Mango Markets Shuts Down Following SEC Settlement - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/mango-markets-shuts-down-following-sec-settlement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mango Markets Shuts Down Following SEC Settlement - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"Solana-based decentralized exchange Mango Markets has decided to cease operations following a settlement with the U.S. Securities and Exchange Commission (SEC). 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