cryptocurrency the nightmare of the ecosystem SEC has now filed a lawsuit against Mango DAO and Blockworks Foundation. In his last statements, SEC Chairman Gensler said that necessary action will continue to be taken against those who ignore the rules. The announcement that just came is about the altcoin MNGO Token, which came to the fore with the hacking incident.
SEC Crypto Case
Blockworks Foundation and Mango The lawsuit filed against Labs LLC concerns various crypto assets offered and sold as securities on the Mango Markets platform. The institution, which has filed the same lawsuits against Coinbase, Binance and many other cryptocurrency exchanges and platforms such as Uniswap, does not give up. Starting in August 2021, Blockworks Foundation and Mango raised $70 million from DAO token sales, according to the SEC’s complaint.
DAODefining the decentralized structure of ‘s “so-called” structure, the SEC states that sales made to hundreds of investors are a crime. Jorge G. Tenreiro, Deputy Chief of the Crypto Assets and Cyber Unit, said that decentralized cryptocurrency protocols are actually centralized and gave a strong signal of the fight against DeFi and DAO structures with the following sentences.
“Since the inception of our crypto implementation program, we have taken the view that the ‘DAO’ label does not change the fact of who is behind a project, what activities they engage in, or whether their activities need to be registered. Intermediating securities with the help of automatic or open source software does not change the nature of such activities.”
Mango DAO, Blockworks Foundation and Mango Labs agreed to pay a penalty of 700 thousand dollars for the settlement in the case filed in the US District Court for the Southern District of New York. They also agreed to remove MNGO Tokens from the platform.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
