The SEC had claimed that these entities’ MNGO token was an unregistered security and therefore they were providing unregistered brokerage services. While this situation has sparked significant debate in the crypto world, it may also affect the future activities of these platforms.

According to the SEC’s statement, within the framework of this agreement, Mango DAO and other related entities will destroy the MNGO tokens they own and request all crypto exchanges to cease trading these tokens.

In addition, a total compensation of $700,000 will be paid. While the SEC states that this agreement is still subject to court approval, it is emphasized that it is an important step in terms of the validity of the agreement.

These developments come after the Mango DAO previously considered a compromise proposal by holding an open vote. The DAO voted on a settlement proposal with the Commodity Futures Trading Commission (CFTC), and this proposal was unanimously accepted.

Members of the Mango DAO vote on proposals via the MNGO governance token. However, uncertainty remains about how the future of the project will be shaped without the token. The absence of the MNGO token may create difficulties in terms of management and financing of the project.

The SEC’s press release also includes information that Mango DAO and Blockworks Foundation sold MNGO tokens worth $ 70 million as of August 2021.

As part of the agreement, Mango DAO, Blockworks Foundation and Mango Labs neither admit nor deny the allegations filed against them by the SEC. This situation once again reveals the relationship of crypto projects with regulatory authorities and how important these relationships are.

“Any entity that provides securities brokerage functions must register with the SEC or be exempt from registration,” SEC Deputy Chairman Jorge Tenreiro said in a statement.

Tenreiro emphasized that since the inception of crypto application programs, the ‘DAO’ label does not change who is behind a project, what type of activities they carry out, or the fact of whether these activities will be recorded. Such statements once again reveal how complex the legal framework of crypto assets is.

Mango Markets was trying to recover after Avraham Eisenberg withdrew more than $110 million in tokens from the exchange in 2022. Eisenberg was convicted this year of fraud and market manipulation related to Mango.

However, the sentencing was postponed until December 12. These developments are considered an important turning point for the future of Mango DAO and the restructuring of the project. This process can play a critical role in rebuilding user trust.

Mango DAO and other relevant parties, with their agreement with the SEC, show that they are trying to resolve current legal issues and reduce potential future risks.

While this agreement creates a significant impact in the crypto world, it also stands out as one of the steps taken towards restoring the trust of users and investors. The end of uncertainties for users and the progress of projects in a more orderly framework may be a harbinger of positive developments in the sector.

However, the question of how such regulatory interventions may affect the dynamic structure of the crypto ecosystem will continue to be an important issue to be answered in the coming period.