Mango DAO Fails To Approve SEC Settlement Proposal

According to PANews, Mango DAO's proposal to accept a settlement with the U.S. Securities and Exchange Commission (SEC) has failed. The proposal initially passed just four hours before the deadline, but support was later withdrawn, leading to its failure. Previously, Mango DAO had agreed to settle with the SEC following accusations of illegally selling MNGO tokens. Mango Labs, Mango DAO, and Blockworks Foundation had agreed to settle the charges and pay a total fine of $700,000. The companies also agreed to destroy their MNGO tokens. This settlement agreement still requires court approval. As part of the settlement, the DAO is prohibited from taking any action or making any public statements that directly or indirectly deny the SEC's allegations or suggest that the allegations lack factual basis. The proposal aimed to authorize the DAO to release $669,684 currently held in escrow and pay the SEC to cover the final judgment amounts owed by DAO, Blockworks, and Mango Labs. All activities involving the offering, sale, or resale of MNGO tokens through interstate commerce means or tools on the Mango Markets protocol are to cease immediately.