Decentralized crypto exchange Mango Markets has already weathered a debilitating multimillion-dollar hack and the expensive regulatory investigations it spawned. The group may soon take another blow: a six-figure settlement with the Commodity Futures Trading Commission (CFTC).
The crypto derivatives trading hub faces CFTC charges for allegedly failing to register as a commodities exchange, for illegally offering services to U.S. customers and failing to check its customers’ identities, according to statements in its Discord server and a proposal on its governance page. The DEX allows users to trade perpetual futures contracts.
On Sunday Mango Markets’ legal representative disclosed the investigation and proposed a resolution: the exchanges’ governing body Mango DAO would pay the CFTC a $500,000 fine. Mango DAO would not admit or deny any wrongdoing but would avoid pending litigation.
The settlement isn’t a done deal. It still must be approved by holders of Mango Markets’ governance token, MNGO. At press time the proposal was heading toward almost certain approval. Once it clears that hurdle the settlement offer must also be accepted by the CFTC’s commissioners.
Mango DAO has ridden this regulatory pain train before. Just last month it voted to offer a six-figure settlement to the Securities and Exchange Commission. It later sent nearly $700,000 in stablecoins to cover a “fine” stemming from allegations that it sold MNGO as an unregistered security.
