On September 27, the US Securities and Exchange Commission (SEC) charged decentralized autonomous organization (DAO) Mango and the Blockworks Foundation with selling unregistered securities.
As part of the settlement, both entities have agreed to pay the SEC $700,000 in civil penalties, destroy their MNGO tokens and require exchanges to delist the tokens.
The SEC has clarified the settlement has been reached without admitting or denying any wrongdoing and is still pending court approval.
The SEC alleged that the two organizations raised more than $70 million by selling MNGO governance tokens to US residents in violation of the Securities Act of 1933.