Mango Markets, a decentralized exchange (DEX) operating on the Solana blockchain, is officially winding down its operations. The platform announced the closure on January 11 via its X (formerly Twitter) account, urging users to finalize their positions. The move comes as governance proposals to halt borrowing and lending activities—through adjustments to interest rates and collateral requirements—were unanimously approved. These changes will take effect on January 13.
A Settlement with the SEC Sets the Stage
Mango Markets’ shutdown follows a high-profile settlement with the U.S. Securities and Exchange Commission (SEC). On September 27, 2024, the SEC filed settled charges against Mango DAO and the Blockworks Foundation, accusing them of selling unregistered securities.
According to the SEC, Mango raised over $70 million in August 2021 through the sale of its MNGO governance tokens, allegedly violating the Securities Act of 1933. The agency also accused Mango Labs of operating as an unregistered broker, in breach of the Securities Exchange Act of 1934.
As part of the settlement, Mango’s decentralized autonomous organization (DAO) agreed to pay $700,000 in civil penalties. The settlement also required the destruction of MNGO tokens and efforts to delist them from exchanges. “Since the inception of our crypto enforcement program, our view has been that the label ‘DAO’ does not change the reality of who is behind a project,” said Jorge Tenreiro, chief of the SEC’s Crypto Assets and Cyber Unit.
The Mango DAO’s community voted on August 19, 2024, to settle with the SEC for $223,228 and destroy MNGO tokens. A separate proposal to settle with the Commodity Futures Trading Commission (CFTC) for $500,000 was approved the following month.
Mango Markets’ Rise and Fall
Launched in August 2021 by Maximilian Schneider, Britt Cyr, and John Kramer, Mango Markets aimed to provide fast, low-cost trading and borrowing services. Built on the Solana blockchain, it used its MNGO governance token to power operations. At its peak in November 2021, the platform had a total value locked (TVL) of $210 million, according to DefiLlama. However, as of January 2025, that figure had plummeted to $9 million, marking a 95.7% decline.
Mango Markets’ downward spiral can be traced to a massive exploit in October 2022. Crypto trader Avraham “Avi” Eisenberg exploited a vulnerability in the platform, draining over $100 million. While Eisenberg returned $67 million following a community governance vote, he retained $40 million. The incident dealt a severe blow to Mango’s finances and reputation.
Eisenberg was arrested in December 2022 and charged with fraud and market manipulation. He has remained in custody since, with his sentencing postponed multiple times. Originally scheduled for December 12, 2024, it was delayed to February 11, 2025, and later to April 10, 2025. Eisenberg faces up to 20 years in prison and additional enforcement actions from the SEC and CFTC.
