Mango Markets, a decentralized exchange on the Solana blockchain, has officially announced its shutdown. On January 11, the platform posted on its X (formerly Twitter) account, advising users to close their positions as it winds down operations. This move follows governance proposals that effectively terminate all borrowing and lending activities on the platform, with the changes slated to take effect on January 13.

The decision comes in the wake of a high-profile settlement with the U.S. Securities and Exchange Commission (SEC). In September 2024, the SEC charged Mango DAO and the Blockworks Foundation for selling unregistered securities through MNGO tokens. The tokens raised $70 million in August 2021, a move the SEC deemed a violation of both the Securities Act of 1933 and the Securities Exchange Act of 1934. Additionally, Mango Labs was accused of operating as an unregistered broker.

As part of the settlement, Mango DAO agreed to pay $700,000 in civil penalties, destroy all MNGO tokens, and petition exchanges to delist the token. SEC Crypto Assets and Cyber Unit chief Jorge Tenreiro reaffirmed the agency's stance, stating that labeling a project as a DAO doesn’t exempt its operators from regulatory compliance.

Mango DAO had already voted in August 2024 to settle the SEC charges for $223,228, followed by a $500,000 settlement with the Commodity Futures Trading Commission (CFTC) the following month.

Launched in August 2021 by Maximilian Schneider, Britt Cyr, and John Kramer, Mango Markets initially offered fast, low-cost trading and lending services on Solana, boasting a $210 million total value locked (TVL) at its peak. However, by the time of its closure, TVL had dropped to just $9 million—an alarming 95.7% decline.

This marks a significant chapter in DeFi's ongoing regulatory battle, with the collapse of a once-thriving Solana project serving as a reminder of increasing scrutiny from regulators worldwide.