SEC Fines Mango Markets, Rari Capital, and eToro USA for Unregistered Securities Offerings

The Securities and Exchange Commission (SEC) reached a settlement with Mango Markets on Friday regarding charges against the company.

The Securities and Exchange Commission (SEC) settled with Mango Markets on Friday over charges from the agency.

Mango Markets didn’t admit or deny the SEC’s findings in the settlement. The company will destroy its MNGO tokens and have trading platforms remove them from their listings. Additionally, Mango Markets will not attempt to have any platform trade, offer, or sell MNGO.

Mango Markets DAO, Blockworks Foundation Hit With SEC Penalties, CFTC Settlement

The SEC alleged that Mango DAO and Blockworks Foundation raised over $70 million in an unregistered offering of MNGO tokens starting in August 2021. The tokens were sold to global investors, including U.S. investors, without being properly registered.

Blockworks Foundation, a non-profit entity in Panama, is separate from the New York-based media company Blockworks. Mango DAO and Blockworks Foundation will each pay $700,000 in civil penalties as part of the settlement.

The SEC noted that labeling a project as a “DAO” does not exempt it from the agency’s regulatory requirements. The statement suggests that the use of automated or open-source software doesn’t alter the need for proper registration.

Mango Markets is also working on a settlement with the Commodity Futures Trading Commission (CFTC). Meanwhile, Avraham Eisenberg, who was earlier this year for manipulating Mango Markets’ futures contracts in 2022, is now seeking a new trial or acquittal. Eisenberg was charged with wire fraud and commodities manipulation.

SEC Fines Rari Capital for Misleading Users

The SEC charged Rari Capital and its co-founders with misleading investors and operating an unregistered securities offering. Furthermore, the co-founders agreed to pay fines and a five-year ban from executive roles without admitting or denying the allegations.

Separately, eToro USA settled with the SEC over allegations that it operated as an unregistered broker. eToro will pay $1.5 million and limit cryptocurrency offerings for U.S. customers, without admitting or denying the charges.

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