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The Mango Market DAO failed to pass a proposal to pay off the Securities and Exchange Commission’s (SEC) $700,000 settlement after a major voter withdrew their vote hours before the deadline.
The proposal required 2% of participants to vote ‘yes’ so that $669,684 USD from the Mango DAO escrow account could be used to settle with the regulator.
According to X user @Henry_E__, the vote passed the 2% minimum threshold with 100 million votes. However, someone withdrew 80 million votes hours before the deadline and the vote failed to pass. Only three voters were registered by the time the deadline had passed.
Read more: MNGO from FTX estate vote for Mango Markets buyback proposal
At this point, the vote could not be saved because, as Henry pointed out, no new ‘yes’ votes can be submitted 24 hours before the deadline. In this period, votes can only be withdrawn or submitted against the proposal. Another 52.2 million ‘yes’ votes were required for a successful verdict.
Mango DAO still has a chance to pay the SEC
Despite the failure of this proposal, there is another vote, identical to this one, that has passed the quorum threshold with two days left until the deadline. This proposal currently has 210 million ‘yes’ votes from five voters and may result in the Mango DAO voting to pay the SEC.
The SEC charged Mango DAO, Blockworks Foundation, and Mango Labs with various securities violations relating to unregistered offerings of MNGO and unregistered brokering.
Last month, the SEC settled these charges. As part of the settlement, all three parties were not required to admit to or deny, the allegations put forward by the SEC. It was also agreed that all MNGO tokens would be destroyed.