Mango Markets Shuts Down Following SEC Agreement

Mango Markets, a decentralized exchange on the Solana blockchain, is shutting down. The decision follows a settlement with the U.S. Securities and Exchange Commission (SEC). On Jan. 11, the platform announced that users should close positions as the shutdown approaches. 

SEC Settlement and Legal Challenges

The SEC filed charges against Mango Markets in September 2024. The regulator accused Mango DAO and the Blockworks Foundation of selling unregistered securities. In August 2021, Mango raised over $70 million by selling MNGO governance tokens, violating the Securities Act of 1933. 

Additionally, Mango Labs was charged for acting as an unregistered broker. As part of the settlement, Mango agreed to pay $700,000 in penalties, destroy MNGO tokens, and ask exchanges to remove the tokens. The SEC emphasized that the DAO label did not exempt Mango from regulatory oversight.

The Fall of Mango Markets

Launched in August 2021, Mango Markets offered fast, low-cost trading on Solana. However, the platform faced a major setback in October 2022. Trader Avraham “Avi” Eisenberg exploited a vulnerability, draining over $100 million. 

Although Eisenberg returned $67 million, he kept $40 million. Authorities arrested him in December 2022, charging him with fraud and market manipulation. Mango Markets’ total value locked (TVL) plummeted from $210 million in November 2021 to just $9 million. 

Legal troubles and financial losses led to the exchange’s closure. This downfall highlights the challenges faced by decentralized finance platforms in handling both legal and security risks.