30s Summary

Mango Labs is suing John Kramer and Maximilian Schneider, accusing them of defrauding the Mango community-run online organization of $10 million. The two are alleged to have purchased MNGO tokens deceitfully on behalf of the organization from bankrupt FTX and manipulated the community fund. The complaint in the U.S. District Court of Puerto Rico accuses them of breach of duty, extortion, and unjust enrichment, and seeks reparations, damages, and the return of the wrongly acquired money. In the midst of this, the U.S. Commodity Futures Trading Commission is discreetly investigating Mango Markets, the exchange run by Mango DAO.

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Mango Labs is taking John Kramer and Maximilian Schneider to court, accusing them of stealing a cool $10 million from the Mango community-run online organization.

These two guys were trusted members of the organization yet they are accused of scheming to make a quick buck when they were purchasing on behalf of the organization from the bankrupt FTX’s its MNGO tokens, their form of digital tokens used for decision-making power.

Some people, who we don’t know yet, are suspected of helping Kramer and Schneider. If we don’t find out who they are, they’re gonna get served court papers through their digital wallets. That’s what Mango Labs said in its complaint submitted in the U.S. District Court of Puerto Rico.

According to what’s in the court case, John and Max promised they would buy MNGO from FTX for the organization at a good price. They said these tokens would be given to the organization and the purchase would also stop bad guys from getting them.

But instead, the two secretly bought MNGO around the start of April 2024 and quietly added it into the community fund. Then they proposed that organization members who are involved in decision making sell their MNGO to the organization at a high price resulting in the Mango community paying around $2.5 million for over 78 million MNGO tokens.

While this proposal passed with the majority of the votes coming from the MNGO they bought, it didn’t take Sherlock Holmes to bust them. The suit says:

“Mango Labs and other members tried telling John and Max to just give the MNGO they got illegally back to the organization at cost. But every time we brought up their con and their betrayal, they just kept trying to pressure Mango Labs to stop.”

The court case accuses John and Max of not fulfilling their duty, violating the Puerto Rico’s civil code on damages, scamming people and unjustly getting rich. The court case wants them to pay money for the wrong they did along with “straight up damages” and hand back the money they got wrongly, and that includes any interest and fees.

John and Max supposedly did all this at the same time Avraham Eisenberg was being tried for taking advantage of the DAO for $110 million. Eisenberg was found guilty of fraud and playing around with commodities on April 18.

Since then, Mango Markets, the exchange run by Mango DAO, has become the subject of a hushed investigation by the U.S. Commodity Futures Trading Commission. On Sept. 27, Mango DAO cleared up charges about unregistered securities with the U.S. Securities and Exchange Commission. It agreed to pay the SEC $700,000 and destroy all MNGO tokens.

Source: Cointelegraph