Mango DAO Rejects Proposal To Pay Commission

The Mango DAO has rejected the proposal to pay the US Securities and Exchange Commission (SEC) $700,ooo as part of Mango Market’s settlement with the Commission for their unregistered MNGO token sales. This comes amid the Crypto Com’s recent lawsuit against the Commission following a Wells Notice, which the regulator issued to the crypto exchange.

Mango DAO Rejects Proposal To Pay US SEC As Part Of Settlement

Realms data shows that the Mango DAO has rejected the proposal to pay the US SEC $700,000 as part of the settlement offer proposed by the DAO, Mango Labs, and Blockworks Foundation. They recently settled with the Commission and had agreed to pay this sum and destroy the MNGO tokens following the charges brought by the regulator for the unregistered sale of these crypto assets.

The proposal was meant to authorize the DAO representative to release the funds currently held in escrow ($669,684) to the SEC to satisfy the amount due against the DAO in satisfaction of the settlement terms. The proposal failed as 52.2 million more Yes votes were needed to pass it. There were only 27,774,65 yes votes in favor of the proposal.

Interestingly, smart contract developer Henry revealed in an X post that the proposal was sailing through with over 100 million votes in favor. However, voters withdrew 80 million of the notes 5 hours before the voting period was to close.

This development comes amid the crypto exchange Crypto Com’s decision to sue the US SEC. The exchange mentioned that the lawsuit was in response to the Wells Notice that it received from the Commission, alleging that it had violated securities laws.

However, it is uncertain if the Crypto Com’s decision to fight back against the SEC might have influenced the DAO’s decision to vote against the proposal.

Top Crypto Settlements By US Regulators

US regulators, including the US SEC, have reached several settlements with crypto firms thanks to these regulators’ enforcement actions. A CoinGecko report showed that crypto companies have reached $32 billion in settlements with these US regulators. The largest is the $12.70 billion settlement by FTX and Alameda with the US Commodity Futures Trading Commission (CFTC). These defunct crypto firms agreed to repay this sum to customers and the fraud victims.

Meanwhile, the second largest crypto settlement is the $4.7 billion fine the bankrupt crypto lender Celsius agreed to pay the US SEC. This is closely followed by the $4.3 billion civil settlement that Terraform Labs reached with the SEC earlier this year. According to CoinGecko, the US SEC and other regulators have recorded $19 billion in top crypto settlements this year.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

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