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Mango Market developers are planning a roadmap to relaunch the Version 4 project. Earlier The U.S. Securities and Exchange Commission (SEC) said that the native token MNGO is a security.
The SEC’s labeling of the token has raised complex questions about whether Mango Markets “version 4” can operate without facing regulator outrage.
The SEC did not blame Mango Market for doing wrong. But earlier, the agency detained Avraham Eisenberg, a Defi trader who wiped out $116 million from the exchange in October 2022 by manipulating the market.
While talking to a crypto media outlet, Lawyers not involved in the case said that the SEC could be laying the groundwork to file a case against an exchange that issued MNGO to its investors when it was launched in 2021.
Howard Fisher, a former SEC trial counsel and partner at the law firm Moses Singer, said, “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.”
In a telephonic discussion with a crypto media outlet, the lead developer of Mango Market said that the software upgrade would restart Mango Market as one of most popular platforms for buying, selling, borrowing and lending cryptocurrencies on Solana.
As per the SEC filing, the MNGO token is offered and sold as a security, which means it is under the regulator’s jurisdiction.
The CFTC registered a case under civil charges against the manipulator of the Mango Market on January 9, 2023, and he was later arrested and detained in Puerto Rico.
The authorities elaborated that starting October 11, 2022, while residing in Puerto Rico, “Eisenberg engaged in a scheme to steal approximately $116 million worth of crypto assets from the Mango Markets platform.”
Authorities said he reportedly “used an account that he controlled on Mango Market to sell a large amount of perpetual futures for MNGO tokens and used a different account to buy back those same perpetual futures.”
The complaint, dated January 20, 2023, states, “After withdrawing the $116 million in crypto assets, Eisenberg stopped manipulating the price of the MNGO token, which led to significant declines in the prices of MNGO and MNGO perpetual futures contracts.”
MNGO governance token gives holders voting rights over Mango Market operation. However, reports state that since November 1, 2022, total value locked of the Mango Market has descended by over 70%.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
