Mango Markets, a decentralized exchange on the Solana blockchain, is shutting down due to legal issues, including a settlement with the US Securities and Exchange Commission (SEC).
Launched in August 2021, Mango aimed to offer fast and affordable trading using its MNGO token. However, in September 2024, the SEC charged Mango DAO, the platform’s governing body, for selling unregistered MNGO tokens during a fundraising round that raised over $70 million. As part of the settlement, Mango agreed to pay a $700,000 fine and remove MNGO tokens from exchanges, significantly impacting the platform.
Mango Markets faced severe challenges after a major hack in 2022. Trader Avraham “Avi” Eisenberg manipulated MNGO’s price, stealing over $100 million. Although he returned $67 million after a community vote, he kept $40 million, leading to his arrest for fraud and market manipulation.
This incident and ongoing legal troubles caused a drastic decline in user trust and the platform’s value, plummeting from $210 million in November 2021 to just $9 million by early 2025.
The decision to close Mango Markets came after a community proposal to halt borrowing and lending on the platform. This proposal was widely accepted, and the closure will take effect on January 13, 2025.
The Mango DAO, which had been actively involved in decision-making, chose to shut down the platform to avoid further complications. Many contributors expressed a desire to move on from the ongoing legal battles and financial decline. The closure marks the end of a significant project that struggled with the challenges of decentralized finance and regulatory pressures.
