The post Mango Markets Faces $500K CFTC Settlement for Regulatory Violations appeared on BitcoinEthereumNews.com.

Mango Markets Faces $500K CFTC Settlement for Regulatory Violations Mango Markets, a decentralized crypto exchange, is reportedly nearing a $500,000 settlement with the Commodity Futures Trading Commission (CFTC) over regulatory violations, including the failure to register as a commodities exchange, according to a report by CoinDesk. The proposed settlement is still pending approval from both MNGO token holders and the CFTC commissioners. This follows a $700,000 settlement that Mango Markets reached with the Securities and Exchange Commission (SEC), adding to the exchange’s mounting legal expenses, which have surpassed $226,000 since a 2022 hack that impacted the platform. CFTC Settlement Pending Approval The proposed $500,000 settlement with the CFTC comes as Mango Markets faces scrutiny for not adhering to regulatory standards, particularly for failing to register as a commodities exchange. As part of the resolution, the settlement must first receive the consent of MNGO token holders, the governance token associated with Mango Markets, and subsequently be approved by CFTC commissioners. This potential settlement highlights the growing pressure on decentralized exchanges (DEXs) to comply with regulatory requirements, especially as government agencies like the CFTC and SEC continue to crack down on crypto platforms. $700K SEC Settlement and Legal Challenges In addition to the pending CFTC settlement, Mango Markets previously agreed to a $700,000 settlement with the SEC for violating securities regulations. These legal challenges, combined with the aftermath of the 2022 hack, which left the exchange with over $226,000 in legal fees, have created significant financial burdens for the platform. The 2022 hack exploited vulnerabilities within the exchange’s system, leading to a major loss of funds and initiating a series of legal battles for the platform. Growing Regulatory Pressure on Decentralized Exchanges Mango Markets’ legal troubles reflect the broader regulatory challenges facing decentralized exchanges as they continue to evolve within the crypto…

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Filed under: News - @ September 24, 2024 7:20 am