Mango Markets, a decentralized exchange built on the Solana network, has announced its shutdown following a settlement with the U.S. Securities and Exchange Commission (SEC). The team behind Mango, along with the Mango DAO, has decided to remove the MNGO token from trading platforms and implement significant changes to deter borrowing, starting January 13. In a social media update, they stated, “Mango v4 and Boost are closing.”
What Led to This Decision?
Mango Markets faced significant turmoil in October 2022, when an attack by Avraham “Avi” Eisenberg resulted in the loss of $110 million from the platform. Despite Eisenberg’s claims of conducting a “profitable trade,” he was later convicted of fraud but is still pursuing a new trial. This major incident marked a turning point for the platform, initiating a series of challenges.
What Regulatory Challenges Did They Face?
In September 2024, Mango DAO reached a settlement regarding allegations of unregistered cryptocurrency sales with the SEC. However, issues continued to arise among the founding members concerning locked tokens obtained from FTX, leading to further complications.
The closure of Mango Markets resulted from various pressures, including:
- Regulatory scrutiny from the SEC.
- Legal disputes among founding team members.
- Internal decisions to stop development efforts.
These recent developments underscore the challenges faced by decentralized exchanges in navigating regulatory landscapes while managing internal strife. The shutdown of Mango Markets marks a notable event in the evolving cryptocurrency sector.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/why-did-mango-markets-shut-down-operations