Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28. Secure Your Seat Developers behind the shuttered decentralized crypto exchange Mango Markets say they’re pushing forward with a relaunch of the project – even as the U.S. Securities and Exchange Commission (SEC) alleges the project’s native token, MNGO, is a security.
The SEC’s labeling of the token raises knotty problems about whether Mango Markets’ “version 4” can proceed without facing regulators’ wrath. The SEC hasn’t alleged wrongdoing by Mango. But the agency last week accused MNGO trader Avraham Eisenberg, who drained $116 million from the exchange in October, of securities market manipulation.
“By noting that purportedly ineligible U.S. investors participated in the token sale, the SEC is implying that it also has authority to bring a future case asserting this is an unregistered securities offering,” said Howard Fisher, a former SEC trial counsel and partner at the law firm Moses Singer.
Source: Mango Markets to Resume Crypto Trading, SEC Be Damned