The decentralized exchange (DEX) Mango Markets, based on Solana (SOL), is closing down due to a series of regulatory issues it encountered last year.

On Saturday, the DEX announced its closure and proposed measures to render borrowing on the platform economically unviable.

“Mango Markets will be shutting down. It is time for users to close their positions.”

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) initiated parallel investigations into Mango Markets after crypto trader Avraham Eisenberg exploited the protocol, resulting in the loss of $110 million worth of digital assets in 2022.

The SEC accused the DEX’s decentralized autonomous organization (DAO) of evading registration requirements and depriving investors of essential protections. It stated that Mango DAO raised over $70 million from unregistered offers and sales of MNGO tokens. Additionally, it alleged that affiliated entities, Blockworks Foundation and Mango Labs LLC, engaged in unregistered broker activities.

In September, Mango DAO, Blockworks Foundation, and Mango Labs agreed to pay the SEC a civil penalty of nearly $700,000, without admitting or denying the allegations. They also agreed to destroy their MNGO tokens and requested the removal of MNGO tokens from trading platforms. Furthermore, the DAO voted to propose a $500,000 settlement with the CFTC.

In April of last year, Eisenberg was found guilty by a jury of commodities fraud, commodities market manipulation, and wire fraud. His sentencing hearing was recently postponed until April 2025.

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Generated Image: Midjourney.