Mango Markets Shuts Down After Legal and Security Struggles

(Originally posted on : Crypto News – iGaming.org )

Mango Markets, a decentralized exchange (DEX) built on the Solana blockchain, has decided to close its doors following a lengthy legal battle with the US Securities and Exchange Commission (SEC). Users are being advised to close their positions as the platform prepares to halt borrowing and lending services soon. Governance-approved changes to the platform will take effect shortly, signaling the end of Mango Markets’ operations.

Mango Markets will be shutting down
It is time for users to close their positions

Mango v4 & Boost are winding down. Most borrowing on Mango will be economically unviable going forward

Proposals are live & become executable on January 13, Monday 8PM UTC

Details below

BetUS

Get 125% / $2,500 on 1st deposit!

New players only. Exclusive Welcome Bonus of up to $2,500

Casino & Sports

Visit Site

— Mango (@mangomarkets) January 11, 2025

Legal Settlement with the SEC

The platform’s shutdown follows a settlement with the SEC, which had accused Mango DAO of selling unregistered securities. According to the SEC, Mango raised over $70 million by offering its MNGO governance tokens in 2021, violating US securities laws. As part of the settlement, Mango DAO is required to pay a $700,000 fine, destroy its MNGO tokens, and request exchanges to delist them. This legal outcome has forced the platform to cease its operations, once deemed a promising player in decentralized finance (DeFi).

Launched in August 2021, Mango Markets initially gained traction due to its decentralized nature, offering fast and low-cost transactions on the Solana blockchain. At its peak, the platform had over $210 million in total value locked (TVL). However, this number has since plummeted by 95%, with the TVL now standing at just $9 million, according to DefiLlama.

In addition to the legal challenges, Mango Markets was also severely impacted by a major exploit in October 2022. Avraham Eisenberg, a trader, manipulated the platform and drained over $100 million. While Eisenberg later returned $67 million following a governance vote, the exploit dealt a significant blow to the platform’s reputation and stability. Eisenberg was arrested and charged with fraud and market manipulation. His sentencing has been delayed several times, with the next hearing scheduled for April 2025.

The closure of Mango Markets marks a sobering conclusion to a project that once showed great promise in the DeFi space. Despite its decline, Mango’s story remains a cautionary tale, highlighting the challenges crypto projects face when navigating regulatory compliance and security risks. The platform’s rise and fall serve as a reminder of the volatile and ever-evolving landscape in the cryptocurrency and blockchain industry.

The post Mango Markets Shuts Down After Legal and Security Struggles appeared first on iGaming.org.

Source link