SEC Makes The Point: This Altcoin Securities!

The U.S. Securities and Exchange Commission (SEC) on Friday named decentralized finance (DeFi) trader Avraham Eisenberg on the Solana centralized DeFi exchange. Mango He blamed it for withdrawing $116 million from Markets. But this action could have a broader impact. The SEC’s accusations are based on claims that Mango’s governance token, the MNGO token, is a “security”. This is an argument type previously used by the SEC.

Eisenberg, 27, was already facing criminal commodity fraud charges for his admitted role in arranging a “highly profitable trading strategy” against Mango Markets in October.

The SEC’s complaint, as well as Eisenberg’s actions, MNGOIt handles the Howey Test standards, which it uses to define . The SEC had previously made a “securities” decision on Coinbase (COIN), and the details of the case are quite similar to this case. After all, the SEC’s problem is not with Mango Markets.

Mango co-founder declined to comment on the matter.

The SEC added that although MNGO has defined it as a governance token, it is traded as a security. The main reason for this is that the owners have a profit expectation and make a joint venture. This is known as the considerations by the SEC. Executives, on the other hand, argue that they designed the token to be used within the scope of governance activities.

SEC Chairman Gary Gensler has stepped up warnings that the regulator is losing patience with unregistered securities and the unregistered exchanges they trade on.

The Commodity Futures Trading Commission accused Eisenberg of manipulating the market last week.

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