• Mango Markets, a Solana-based crypto exchange, is pushing forward with a relaunch of the project, despite the US Securities and Exchange Commission (SEC) alleging that the project’s native token, MNGO, is a security.
• The SEC has not alleged wrongdoing by Mango, but accused MNGO trader Avraham Eisenberg of securities market manipulation.
• Securities lawyers have suggested that the SEC might be laying the groundwork to bring a case against the exchange that issued MNGO.
Mango Markets, a Solana-based crypto exchange, is pushing forward with a relaunch of the project, despite the US Securities and Exchange Commission (SEC) alleging that the project’s native token, MNGO, is a security. This is an ambitious move, as the SEC’s labeling of the token raises knotty problems about whether Mango Markets’ “version 4” can proceed without facing regulators’ wrath.
The SEC has not alleged wrongdoing by Mango. Instead, the agency last week accused MNGO trader Avraham Eisenberg of securities market manipulation, claiming that he drained $116 million from the exchange in October. Eisenberg is accused of “trading in a manner designed to artificially inflate the price of MNGO”, according to the SEC.
In light of this, securities lawyers who are not involved in the case have suggested that the SEC might be laying the groundwork to bring a case against the exchange that issued MNGO to its investors when it launched in 2021. They point to the fact that the SEC noted that purportedly ineligible US investors participated in the token sale, implying that the agency has authority to bring a future case asserting that this is an unregistered securities offering.
Mango Markets CEO, Daniel Harenberg, has stated that the relaunch of the project is intended to restore full liquidity to the MNGO token and rebuild trust in the platform. He also acknowledged that the relaunch will bring new challenges that the team will need to navigate, but he remains confident that the project can operate within the confines of the law.
The relaunch of Mango Markets is expected to bring new features and improved user experience. The team is currently focusing on the development of the platform, and the relaunch is planned for early 2022.
In the meantime, the SEC’s allegations against Eisenberg and the potential for further action against Mango Markets remain a concern. However, the team behind the exchange is determined to move forward with the relaunch and show that they are willing to comply with relevant regulations.