Mango markets set to close following regulatory woes and internal turbulence
Mango markets set to close following regulatory woes and internal turbulence
Mango Markets, a Solana-based decentralized exchange that gained notoriety for a $110 million exploit in 2022, announced it will wind down operations.
The decision follows a series of regulatory and internal challenges, including a recent settlement with the U.S. Securities and Exchange Commission (SEC). The announcement, made via the protocol’s X account on Saturday, stated, “Mango v4 & Boost are winding down. Most borrowing on Mango will be economically unviable going forward.”
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As part of the settlement, Mango Markets' governance DAO and development organization agreed to destroy their native MNGO tokens and delist them from all exchanges. Additionally, DAO proposals aimed at increasing borrowing costs and modifying collateral requirements will take effect on Jan. 13 at 8 p.m. UTC. These changes, supported unanimously by the community, are expected to make borrowing and lending economically impractical.
From exploits to regulatory scrutiny
Mango Markets' decline began in October 2022 when Avraham “Avi” Eisenberg exploited the platform, draining $110 million by manipulating the price of its MNGO token. Eisenberg was later convicted of fraud, though he has since sought a new trial.
In 2024, the platform’s governance DAO faced further challenges, settling an SEC lawsuit over allegations of selling unregistered crypto assets and operating as an unregistered broker. The DAO also became mired in internal disputes, with co-founders and contributors filing lawsuits against one another over locked MNGO tokens purchased from the FTX estate.
The decision to wind down Mango Markets stems from both external pressures and waning interest among contributors. On Jan. 3, co-founder Maximilian Schneider proposed a “graceful shutdown” on Discord, citing a general lack of motivation to continue development. The proposal received support, culminating in the platform’s closure announcement.
The collapse of Mango Markets underscores the ongoing challenges faced by decentralized finance platforms in navigating security, regulation, and governance issues.
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