Mango Markets Calls it Quits, to Cease Operations

Solana-based decentralised exchange (DEX) Mango Markets will shut down operations following an SEC settlement that mandates the destruction and delisting of its MNGO tokens.

In a post on X (formerly known as Twitter), the platform urged users to close their positions, warning that borrowing will soon become unfeasible due to the shutdown of Mango V4 and Boost.

Governance proposals to adjust interest rates and collateral requirements—aimed at discouraging borrowing and lending—are set to take effect on 13 January at 8 pm UTC.

Both proposals have received unanimous support and met the required threshold for approval.

DAO Disputes & SEC Troubles

Mango Markets' governance DAO settled an SEC lawsuit that accused Mango DAO, Mango Labs, and Panama-based Blockworks Foundation (unrelated to the media company) of selling unregistered securities and operating as an unregistered broker in September 2024.

The SEC alleged that Mango raised over $70 million in August 2021 through its MNGO token sale, violating the Securities Act of 1933, while Mango Labs was accused of breaching the Securities Exchange Act of 1934 by acting as an unregistered broker.

As part of the settlement, Mango's DAO agreed to pay $700,000 in civil penalties, destroy MNGO tokens, and request their delisting from exchanges.

Jorge Tenreiro, chief of the SEC's Crypto Assets and Cyber Unit, said:

“Since the inception of our crypto enforcement program, our view has been that the label 'DAO' does not change the reality of who is behind a project.”

On 19 August 2024, the DAO voted to settle with the SEC for $223,228 and eliminate MNGO tokens, followed by a separate $500,000 settlement proposal with the CFTC in September.

However, later that year, internal disputes erupted among Mango’s co-founders and core contributors over a tranche of locked MNGO tokens acquired from the FTX estate, leading to lawsuits within the team.

Founded in August 2021 by Maximilian Schneider, Britt Cyr, and John Kramer, Mango Markets was built on the Solana blockchain as a DEX and lending platform, offering low-cost trading and borrowing through its governance token, MNGO.

At its peak, the platform held $210 million in total value locked (TVL) in November 2021, but at the time of writing, this had plummeted to $6.73 million, according to DeFiLlama. https://defillama.com/protocol/mango-markets

On 3 January, co-founder Maximilian Schneider initiated a discussion in Mango's Discord about a "graceful shutdown":

"I believe that all active contributors by now have expressed a desire to stop working on Mango in general or specifically on Mango v4 & Boost."

With support from other team members, Mango Markets formally announced its plans to wind down.

Shadow from $100M+ Exploit

Mango Markets' downfall traces back to an October 2022 exploit, where crypto trader Avraham "Avi" Eisenberg siphoned over $100 million from the platform.

Eisenberg manipulated the price of Mango's MNGO token on external exchanges, artificially inflating its value before withdrawing substantial funds—a tactic he later described as a "highly profitable trading strategy."

While he returned $67 million following a community governance vote, he kept $40 million.

US authorities arrested him in December 2022, charging him with fraud and market manipulation.

Eisenberg has remained in custody since, with his sentencing repeatedly postponed.

Initially set for 12 December 2024, it was delayed to 11 February 2025, and later to 10 April 2025, due to the "complexity of sentencing issues," according to his legal team.

He faces up to 20 years in prison, along with potential civil enforcement actions from the SEC and CFTC.

Mango Markets' "Graceful Shutdown”

Mango Markets' planned shutdown marks a pivotal moment for its contributors, many of whom had long recognised the need for change.

While legal scrutiny and market conditions accelerated this decision, the transition offers an opportunity to reassess the project's trajectory.

In the meantime, the platform is focused on stabilising its remaining assets as it prepares to cease operations.