Mango Markets (CRYPTO:MNGO), a Solana-based decentralised exchange, is exploring a settlement with the Commodity Futures Trading Commission (CFTC) for $500,000 to resolve allegations related to unregistered commodities exchange operations and insufficient KYC measures.
The proposal, submitted to the Mango DAO on Sept. 22 by the platform’s legal team, addresses an "ongoing and nonpublic" investigation by the CFTC.
While details of the investigation remain confidential, the settlement would prevent further litigation from the CFTC.
The DAO representative emphasised that if accepted, the agreement would not involve admitting or denying any wrongdoing.
The proposal appears to have strong support within the Mango DAO, with 123,475,000 votes in favor and no opposition at the time of publication.
This marks the second significant regulatory settlement for Mango Markets in recent weeks.
In August, the DAO agreed to pay $670,000 in USD Coin (CRYPTO:USDC) to the U.S. Securities and Exchange Commission (SEC) for allegations of selling its MNGO token as an unregistered security in 2021.
Mango Markets has faced increased regulatory scrutiny following a $110 million exploit in October 2022, where trader Avraham Eisenberg manipulated the protocol for personal profit.
The exploit triggered investigations by the SEC, DOJ, and CFTC, leading to criminal charges against Eisenberg for fraud and market manipulation.
At the time of writing, the Mango (MNGO) price was $0.01465.