Mango DAO and Mango Markets have reached a settlement with the U.S. Securities and Exchange Commission (SEC) regarding charges related to the unregistered sale of MNGO tokens. The settlement involves a total payment of $700,000 in penalties, which will be shared among Mango DAO, Mango Labs, and Blockworks Foundation. The SEC's charges highlighted that these entities engaged in the unregistered offer and sale of governance tokens on the Mango Markets platform, which is considered a violation of securities laws. In addition to the penalties, the involved parties have agreed to destroy their MNGO tokens. The SEC emphasized that the designation of a project as a "DAO" does not exempt it from regulatory scrutiny. Jorge G. Tenreiro, the acting chief of the Crypto Assets and Cyber Unit, stated that the underlying activities and the individuals behind the project remain subject to registration requirements, regardless of the use of automated or open-source software. The SEC's complaint also identified SOL, a cryptocurrency sold on Mango Markets, as a security. This classification aligns with previous assertions made by the SEC in a separate lawsuit against the crypto exchange Binance, where SOL and other cryptocurrencies were similarly categorized. This settlement comes in the wake of significant issues faced by Mango Markets, including a major exploit that resulted in a loss of approximately $116 million, attributed to Avraham Eisenberg, who has since been convicted for his actions. The resolution of these charges marks a critical moment for Mango DAO and its associated entities as they navigate the complex regulatory landscape surrounding cryptocurrencies and digital assets.