The US Securities and Exchange Commission (SEC) has alleged that the native token of the decentralized crypto exchange, Mango Markets (MNGO), is a security.
The SEC has not alleged any wrongdoing by Mango Markets, however, the agency has accused MNGO trader Avraham Eisenberg, who drained $116m from the exchange in October, of securities market manipulation.
The SEC’s labeling of the token raises knotty problems about whether Mango Markets’ “version 4” can proceed without facing regulators’ wrath.
The SEC might be laying the groundwork to bring a case against the exchange that issued MNGO to its investors when it launched in 2021.
Despite the SEC’s concerns, Mango’s developers are pressing forward with the trading venue’s relaunch.
