The Securities and Exchange Commission (SEC) has filed charges against Mango DAO and Blockworks Foundation for the sale of MNGO tokens which the Commission alleges were actually unregistered securities.
Without admitting or denying the allegations, Mango DAO, Blockworks Foundation, and Mango Labs have all agreed to settle the SEC charges, consenting to injunctions and pay a penalty of nearly $700,000.
They have also agreed to destroy the MNGO tokens, to request the removal of MNGO tokens from trading platforms, and to refrain from soliciting any trading platform to allow trading in or offering or selling MNGO.
The settlements are subject to court approval.
The SEC’s complaint alleges that by not registering the digital assets, Mango DAO, Blockworks Foundation, and Mango Labs deprived investors of critical protections afforded by the federal securities laws.
Jorge G. Tenreiro, Acting Chief of the Crypto Assets and Cyber Unit, said it has been their belief since the emergence of crypto that DAO or decentralized autonomous organization does not change who is being the project.
“Nor does engaging in intermediation of securities with the aid of automated or open source software change the nature of such activities. If you engage in securities-intermediary functions, you must register or be exempt from doing so, regardless of the technology employed and the type of legal entity used.”
