The decentralized autonomous organization (DAO) behind the Solana-based decentralized finance (DeFi) protocol, Mango Market , has overwhelmingly approved a proposal to resolve a securities violation case with the US Securities and Exchange Commission (SEC).

On Aug. 19, MangoDAO submitted the SEC Settlement Offer Proposal to avoid further legal action after the financial regulator accused the platform of securities violations.

Under the proposal, MangoDAO would pay the SEC $223,228 in fines, destroy its MNGO token holdings, and seek removal from trading platforms. It added:

“The proposed settlement would also require the DAO to halt, and confirm that it is adhering to, all of its distributions, trades, or re-sales of MNGO tokens within the United States through the use of interstate commerce.”

Crypto lawyer Gabriel Shapiro pointed out that the SEC typically requires “token issuers” to destroy all “unissued” tokens to dissolve the “common enterprise” and end the “investment contract.” However, he questioned whether delisting the tokens from centralized exchanges truly serves investors’ interests.

The MangoDAO proposal, however, clarified that the settlement does not constitute an acceptance or denial of any wrongdoing.

As of this writing, the proposal has achieved a quorum, surpassing 110 million votes, all in support of the settlement.

Mango Market’s downturn

Mango Markets, formerly a prominent DeFi platform on Solana, fell victim to an exploitation by Avraham Eisenberg in 2022, resulting in a loss of $110 million. Eisenberg acknowledged his actions at the time, claiming they were lawful.

Eisenberg was recently found guilty of commodities fraud, commodities manipulation, and wire fraud. He is reportedly pursuing a retrial of his case.

Despite Eisenberg returning a substantial portion of the funds to MangoDAO, the platform has faced challenges since, with deposits remaining significantly lower than their pre-exploitation levels. This incident also drew regulatory scrutiny, prompting further inquiries into Mango Markets by entities like the US SEC.

The MNG token has shown a 4% increase in the past 24 hours, according to data from CryptoSlate .