SEC, Mango Markets entities “MNGO” The administration blames it for the unregistered supply and sale of its tokens.
The U.S. Securities and Exchange Commission (SEC) has filed criminal charges against Mango DAO and Blockworks Foundation, accusing them of unregistered offers and sales of “MNGO” tokens, the governance tokens of the Mango Markets cryptocurrency platform.
Additionally, the SEC filed charges against Blockworks Foundation and Mango Labs for operating as unregistered intermediaries by enabling trading of crypto assets that are considered securities on the platform.
According to the SEC’s complaint, Mango DAO, a decentralized autonomous organization (DAO), and Panama-based Blockworks Foundation raised over $70 million through unregistered sales of MNGO tokens starting in August 2021. The tokens were sold to hundreds of investors, including US residents.
The SEC also accused Blockworks Foundation and Mango Labs of acting as unregistered intermediaries by encouraging users to trade securities on Mango Markets, providing investment advice, and assisting in executing securities transactions.
Jorge G. Tenreiro, Acting Director of the SEC’s Crypto Assets and Cyber Unit, noted that the use of a DAO or automation does not exempt organizations from securities regulations. “If you engage in securities brokerage functions, you must register or be exempt regardless of the technology used and the type of legal entity used,” Tenreiro said.
The SEC’s lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses Mango DAO and Blockworks Foundation of violating the Securities Act of 1933 and accusing Blockworks Foundation and Mango Labs of violating the broker registration provisions of the Securities Exchange Act of 1934. accuses him of violating it.
Without admitting or denying the allegations, the organizations agreed to settle the charges. They will collectively pay approximately $700,000 in damages, destroy the remaining MNGO tokens, and request the removal of MNGO tokens from trading platforms.
They also agreed to stop requiring any platforms to list the tokens. The agreement will be subject to court approval.
*This is not investment advice.
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Source: https://www.bitcoinsistemi.com/son-dakika-sec-altcoin-ve-kripto-para-sirketine-dava-acti-menkul-kiymet-oldugunu-iddia-ediyor/
