The U.S. Securities and Exchange Commission (SEC) has settled the lawsuit against Mango DAO, Mango Labs LLC, and Blockworks Foundation, alleging that the MNGO token was offered as an unregistered security and that the parties provided unregistered brokerage services through a settlement.

According to the agreement, the relevant institutions will destroy the MNGO tokens and request the termination of the token's transactions from cryptocurrency exchanges. In addition, they will make a total payment of $700,000. This agreement is subject to court approval.

It is known that Mango DAO held a vote a little over a month ago to decide whether to accept this proposal. At the same time, the DAO unanimously accepted a proposal with the U.S. Commodity Futures Trading Commission (CFTC) earlier this week.

Mango DAO members vote on project decisions using the MNGO governance token. However, it is currently unclear how the project will proceed without this token, as its future is uncertain.

Sold $70 million worth of tokens

According to the announcement made by the SEC, Mango DAO and Blockworks Foundation conducted a MNGO token sale worth $70 million starting from August 2021.

Jorge Tenreiro, the SEC's Crypto and Cyber Unit President, said, "Every organization offering securities brokerage activities must register with the SEC or be exempt from registration."