Mango DAO Shuts Down After Months-Long Saga of Lawsuits and Exploits

Mango DAO members are voting to shut down the digital collective that manages the Mango Markets trading platform.

Three proposals designed to force users to close their trading positions and prevent them from opening new ones were created on January 11.

So far, two of the three proposals have passed.

The votes mark the end of a turbulent, months-long saga at the decentralised autonomous organisation.

In August, DAO members ratified a proposal to settle a lawsuit brought against the app’s creators by the Securities and Exchange Commission.

The settlement stipulated that the DAO would destroy the MNGO governance token and pay a hefty fine to the regulator.

Then in October, Mango Labs brought legal action against two senior contributors, accusing the pair of running a fraudulent scheme to enrich themselves at the DAO’s expense.

Mango Markets was once one of the Solana blockchain’s leading DeFi apps with over $200 million in deposits.

In 2022, crypto trader Avraham Eisenberg, stole $115 million from the protocol by exploiting a vulnerability in the way the app calculated asset prices.

Eisenberg was convicted by a federal jury for fraud and market manipulation in April.