Mango Markets, a once-promising Solana-based decentralized exchange, has reached its bittersweet finale. After years of legal battles, exploits, and governance votes, the platform is officially winding down. Let’s explore what led to the end of Mango Markets and the role the SEC played in this saga.

Mango Markets Faces Its Last Days

Mango Markets announced its closure, signaling the end of an ambitious project. Governance proposals aimed at making borrowing and lending impractical were unanimously approved, marking January 13 as the final date for users to close their positions. This decision came after a long list of struggles, culminating in a settlement with the SEC.

Founded in August 2021 by Maximilian Schneider, Britt Cyr, and John Kramer, Mango initially gained traction as a fast and affordable decentralized exchange and lending platform built on the Solana blockchain. Using its governance token, MNGO, the platform raised over $70 million but later faced scrutiny for violating securities laws.

In August 2024, the Mango DAO voted to settle with the SEC for $223,228 and agreed to destroy all MNGO tokens. The DAO also approved a separate $500,000 settlement with the CFTC in September 2024. These actions, coupled with the removal of MNGO tokens from exchanges, stripped the platform of its foundation. By early 2025, Mango Markets’ total value locked (TVL) had fallen to $9 million, a sharp decline from its all-time high of $210 million in November 2021, according to .

The SEC and Mango Markets’ Token Troubles

The SEC’s charges against Mango DAO were pivotal. The regulator claimed Mango’s 2021 token sale raised over $70 million by selling unregistered securities. This violated key securities laws. As part of the settlement, Mango DAO paid $700,000 in penalties and agreed to destroy MNGO tokens.

The SEC’s message was clear: calling an organization a DAO doesn’t exempt it from legal accountability. This decision sent ripples through the crypto world, highlighting the importance of compliance in decentralized projects.

Mango Markets’ Rocky History

Mango Markets had its share of triumphs and tribulations. The platform, launched in 2021, promised fast and affordable trading on the Solana blockchain. However, it faced a major setback in October 2022 when it fell victim to a $110 million exploit. A trader, Avi Eisenberg, manipulated the price of MNGO, draining the protocol. While some funds were returned, the damage was done.

This exploit was followed by lawsuits, governance votes, and internal conflicts, leaving the community divided. By early 2025, Mango’s contributors expressed a shared sentiment: it was time to move on.

Legal Battles and Lessons Learned

Mango Markets’ journey was a cautionary tale. It showed the challenges of operating in a regulatory gray area and the risks of innovative but vulnerable platforms. The SEC’s involvement emphasized the need for clarity and compliance in the evolving crypto space.

As Mango Markets bids farewell, it leaves behind a mixed legacy. It was a pioneer that faced immense challenges. Though it didn’t survive, its story offers valuable lessons for crypto innovators everywhere.