The US Securities and Exchange Commission (SEC) considers that the Mango Markets crypto platform trades in unregistered securities and files “resolved” charges. Particularly, the trading platform issued a native token, (MNGO) which the Commission identifies as a security.
This Friday, the agency said that there were “resolved” charges also regarding Mango Labs and Blockworks. In the agreement with the regulatory agency, the entities accepted the payment of $700,000 in fines and the total burning of the MNGO token. This includes asking exchanges to immediately stop trading the token.
It should be noted that this agreement would have been signed without any of the parties admitting guilt for the charges brought by the SEC. Likewise, the agreement now depends on the approval or rejection of the Court in charge. It is worth mentioning that in its war against cryptocurrencies, the SEC considers that the vast majority of tokens are securities or securities that do not have a license to operate.
Consequently, by considering them as such, the right to file lawsuits against the companies that trade them is attributed. Under this scheme, the SEC files charges against Mango Markets. Trading MNGO would have violated the securities laws of 1933.
SEC Files Charges Against Any Crypto Company
The SEC’s conviction that all tokens are securities leads it to enforce the law through punishment. In a recent interview with CNBC, the president of this agency, Gary Gensler, assured that the crypto sector lacks trust and is full of scammers. The latter forces the agency to be vigilant against platforms that threaten the security of investors.
The official stressed that the crypto sector is one of the most prone to committing crimes and the imprisoned businessmen are proof. He added that the fact that crypto actors do not like the laws does not give them the right to disobey them.
He compared companies based on innovation to new cars. Thus, he said that no matter how modern and innovative an electric car is, it should still stop at the red light of the traffic lights. The Mango Markets case is just one of the battle fronts in the crypto world against the onslaught of regulators.
This decentralized organization (DAO) was also accused of operating as an unauthorized broker or dealer. In August of this year, members of this DAO held a vote to reach an agreement with regulators. This included the SEC lawsuit and the Commodity Futures Trading Commission investigation.
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