Mango Markets Relaunch in Limbo as SEC Scrutiny Lingers

• Developers behind the Solana-based crypto exchange Mango Markets are pushing forward with a relaunch despite scrutiny from federal regulators.
• The SEC has accused MNGO trader Avraham Eisenberg of securities market manipulation and is implying that it has the authority to bring a case against the exchange that issued MNGO.
• Securities lawyers have raised knotty problems about whether Mango Markets’ “version 4” can proceed without facing regulators’ wrath.

Developers behind the crypto exchange Mango Markets are pushing forward with a relaunch of the project, despite scrutiny from the U.S. Securities and Exchange Commission (SEC). Last week, the SEC accused MNGO trader Avraham Eisenberg of securities market manipulation, and has implied that it might bring a case against the exchange that issued MNGO. This has raised knotty problems about whether Mango Markets’ “version 4” can proceed without facing regulators’ wrath.

Mango Markets is based off of the Solana blockchain, and first launched in 2021. The SEC’s labeling of the token as a security raises questions about whether the relaunch can go through without facing any legal trouble. Securities lawyers who aren’t involved in the case have told CoinDesk that the SEC might be laying the groundwork to bring a case against the exchange in the future.

The SEC’s allegations against Eisenberg stem from an incident in October, where he drained $116 million from the exchange. This raised alarm bells for the regulators, who have been on the lookout for potential securities fraud. The SEC has not alleged any wrongdoing by Mango, but the implications of their investigation are still lingering.

The implications of the SEC’s investigation have raised knotty problems about whether Mango Markets’ relaunch can proceed without facing any legal repercussions. It is currently unclear how the SEC will proceed, as the agency has yet to bring any formal charges against Mango or Eisenberg. For now, the developers behind the project are continuing their work and hoping to relaunch the exchange as soon as possible.

The SEC’s investigation has also brought up some difficult questions about the legality of the token and the exchange’s operations. Securities lawyers have warned that the SEC could potentially bring a case against the exchange, which could have serious repercussions. It is unclear how the SEC will proceed, but the implications of their investigation are still a cause for concern.

For now, developers behind the project are continuing their work and hoping to relaunch the exchange as soon as possible. It remains to be seen how the SEC will proceed and what the ultimate outcome of their investigation will be. Until then, it is important for investors to remain vigilant and cautious about their investments.