SEC Sues Eisenberg for Draining Mango Markets, Alleges MNGO a Security

In this case, the agency said that despite MNGO’s labeling as a “governance token,” it “was purchased and sold as a crypto asset security.” Its holders had expectations of profit and “entered into a common enterprise” – two of the factors the SEC looks for in identifying investment contracts that fall under securities laws. And holders of MNGO can use their tokens to vote in decisions governing Mango Markets’ operations, the agency said.