Mango Markets, a decentralized exchange (DEX) built on the Solana blockchain, has announced it is ceasing operations. The decision follows governance votes, legal challenges, and a settlement with the US Securities and Exchange Commission (SEC) related to the platform’s governance tokens.
On January 11, Mango Markets shared the news via its official X (formerly Twitter) account, advising users to close their positions.
Governance Votes and Platform Shutdown
The decision to shut down Mango Markets comes after governance proposals were passed unanimously. These proposals aimed to adjust interest rates and collateral requirements, effectively ending all borrowing and lending activities on the platform. The changes are set to take effect on January 13, signaling the platform’s final phase of operations.
SEC Settlement Details
On September 27, 2024, the SEC filed settled charges against Mango DAO and the Blockworks Foundation, alleging the sale of unregistered securities.
Key details of the SEC settlement include:
- Mango raised over $70 million in August 2021 by selling MNGO governance tokens, allegedly violating the Securities Act of 1933.
- Mango Labs was accused of acting as an unregistered broker, breaching the Securities Exchange Act of 1934.
- As part of the settlement, Mango DAO agreed to:
- Pay $700,000 in civil penalties.
- Destroy all MNGO tokens.
- Petition exchanges to delist MNGO tokens.
Jorge Tenreiro, chief of the SEC’s Crypto Assets and Cyber Unit, emphasized that labeling an entity as a DAO does not exempt individuals behind it from regulatory compliance.
In addition to the SEC settlement, Mango DAO voted in August 2024 to settle with the SEC for $223,228. Another proposal in September 2024 included a $500,000 settlement with the Commodity Futures Trading Commission (CFTC).
Mango Markets’ Journey and Decline
Launched in August 2021, Mango Markets was founded by Maximilian Schneider, Britt Cyr, and John Kramer. The platform was designed as a decentralized exchange and lending hub, offering fast and low-cost trading services powered by its governance token, MNGO.
At its peak in November 2021, Mango Markets had a total value locked (TVL) of $210 million, according to DefiLlama. However, as of January 2025, its TVL has plummeted by 95.7% to just $9 million.
Mango Markets’ closure reflects the growing regulatory scrutiny faced by decentralized platforms, particularly those involving tokenized governance and financial services. The platform’s shutdown serves as a reminder of the challenges that decentralized projects must navigate in an evolving regulatory landscape.
