Mango token will be destroyed
The U.S. Securities and Exchange Commission (SEC) settled allegations against Mango DAO, Mango Labs LLC, and Blockworks Foundation because the latter organizations offered unregistered broker services. The MNGO token was purportedly an unregistered security.
The financial watchdog in a press statement highlighted the firm will destroy their MNGO tokens, request that cryptocurrency exchanges stop trading the tokens, and pay $700,000 as part of the settlement, which is still pending court approval.
Acting Chief of the SEC’s Crypto and Cyber Unit Jorge Tenreiro stated that any organization providing “securities-intermediary functions” must register with the SEC or be exempt from doing so.
“Since the beginning of our crypto enforcement program, we have maintained that the term “DAO” does not alter the truth about the people behind a project, the kinds of activities they carry out, or whether or not those activities require registration. Furthermore, using automated or open-source software to facilitate the intermediation of securities does not alter the nature of these operations,” he stated
The settlement was reached a little more than a month after Mango DAO conducted a public vote to decide whether to accept the settlement offer. Earlier this week, the DAO unanimously voted on a settlement deal with the Commodity Futures Trading Commission (CFTC).
Members of the Mango DAO cast votes on ideas using the MNGO governance token. it’s unclear what the project’s future holds without the token.
According to a press release from the SEC, $70 million worth of MNGO tokens were sold by Mango DAO and Blockworks Foundation, which is unrelated to the news and events industry.
Mango DAO, Blockworks Foundation, and Mango Labs are not confirming or rejecting the allegations as part of the settlement.
ABOUT THE AUTHOR
See More
Sidebar rates
Add 3442
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals