OKX’s Accusations and Market Implications

Recently, OKX revealed through a public statement that the Mantra team has allegedly been spreading misleading information about the OM token. OKX claims that it has identified evidence of “multiple connected and colluding accounts” using large quantities of OM as collateral to borrow USDT, artificially inflating OM’s price. These accounts, when contacted by OKX to rectify the situation, allegedly refused to comply, leading OKX to take control of the accounts to mitigate risk. Subsequently, the price of OM plummeted.

OM Token Price Surge and Crash

OKX stressed that despite liquidating a minor portion of OM, losses from the crash were covered by the OKX Security Fund. Moreover, third-party analyses suggest that the drastic fall in OM’s price was significantly influenced by perpetual trading activities outside of OKX’s environment. Questions were raised regarding the origin of the unusually large quantities of OM, bringing the concentration of supply into the spotlight.

Mantra’s Response and Migration Timeline Dispute

On the other hand, Mantra CEO JP Mullin has been vocal about his concerns, urging OM holders to withdraw their tokens from OKX. Mullin accuses the exchange of providing incorrect migration dates, claiming that the ERC-20 OM token cannot be migrated until its deprecation on January 15, 2026, rendering OKX’s proposed timeline infeasible.

Calls for Transparency

Mullin further insists that OKX disclose the number of OM tokens it holds for users and for itself, emphasizing the need for compliance and transparency. He argues that making the dispute public serves the community’s best interest, fostering transparency.

Legal Proceedings and Future Outlook

In a December 10 letter, OKX countered Mullin’s public statements, arguing that they could harm the exchange and its users. OKX refuted claims that legal risks hindered cooperation and warned that blocking migration could unfairly penalize its users. Meanwhile, Mullin reiterated that the chain upgrade and token split would occur post-deprecation, requiring no user action.

As the legal pressure mounts, OKX has submitted comprehensive evidence to regulators, indicating that multiple litigations and legal proceedings are in progress. For OM holders, the situation remains uncertain, highlighting the fragile nature of trust between exchanges, token issuers, and users when communication and timelines are misaligned.

The post OKX and Mantra: 5 Shocking Legal Developments Exposing Misleading Tactics appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Mantra clarified that the project had not sold any tokens and that the team remains fully operational, continuing to probe the incident. Despite earlier comments from Mantra CEO John Mullin about a forthcoming post-mortem analysis, the new statement provides scant new information regarding the rapid transfer of OM tokens to exchanges and the ensuing liquidation cascade.

The statement also highlighted the existence of two variants of OM tokens; one is Ethereum-based (ERC-20) and the other operates on Mantra’s mainnet. As per the statement, “The incident almost exclusively involved ERC-20 OM, as ERC-20 OM makes up nearly the entire liquid market.”

The original ERC-20 OM token, launched in August 2020, has a capped supply of 888.8 million OM. As of April 15, 99.9% of these tokens were publicly circulating. On the other hand, Mantra mainnet OM tokens had a circulation of only 77.5 million, following the minting of an equivalent amount of OM by Mantra Chain in October 2024.

Mantra’s statement also noted a discrepancy in OM spot prices on OKX and Binance starting around 6:00 pm UTC, approximately an hour before the OM token crash. Mantra anticipates that more information from its exchange partners will “shed more light on these events,” and added, “We call on our centralized exchanges partners to help provide more transparency on trading activities during this period.”

The DeFi platform confirmed it is devising a support plan for OM, which includes a token buyback and supply burn. However, no specific timeline for the plan’s implementation was given. Following the crash, Star Xu, OKX CEO, labeled Mantra a “big scandal.” Meanwhile, Mantra CEO Mullin identified Binance as the largest holder of the OM token, referencing Etherscan records.

When Cointelegraph reached out to Mantra’s team for additional commentary on the April 16 statement, no response was received by the time of publication.

The post Mantra’s Statement on OM Token Crash Still Leaves Unresolved Queries appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

In today’s issue, we’ll discuss the shocking price drop of MANTRA’s OM token, the alleged investigation of crypto bank Anchorage Digital by the U.S. Department of Homeland Security, the resumption of Strategy’s bitcoin purchasing, and more. Moreover, Tether is preparing to deploy its hashrate on OCEAN’s decentralized Bitcoin mining pool.

MANTRA’s OM token saw a drastic drop of over 90% within a few hours on Sunday, moving from around $6 to $0.45. This sudden collapse led to widespread concerns about a possible rug pull or hack. The MANTRA team, however, attributed the fall to “hasty liquidations” triggered by a large investor’s forced position closure on a centralized exchange, according to co-founder John Patrick Mullin.

The Layer 1 real-world asset blockchain project has previously faced allegations of controlling large portions of the token’s circulating supply in an attempt to manipulate its price, which Mullin has consistently denied.

The plunge resulted in roughly $70 million in liquidations within 24 hours, with several positions losing over $1 million, as per CoinGlass data. Laser Digital, a significant investor in MANTRA, has denied any involvement in the OM token crash and refuted claims of large-scale sales by its wallets.

The U.S. Department of Homeland Security’s El Dorado Task Force is reportedly investigating Anchorage Digital. While the specifics of the investigation remain unclear, the task force’s mission includes disrupting and dismantling transnational money laundering organizations.

Bitcoin treasury company Strategy (formerly known as MicroStrategy) has recently purchased an additional 3,459 BTC for approximately $285.8 million. JPMorgan’s blockchain division, Kinexys (formerly Onyx), has launched British pound sterling (GBP) blockchain deposit accounts.

Kraken has initiated the rollout of U.S. equities trading in certain states, enabling customers to manage crypto, stocks, and ETFs from a single account in partnership with licensed broker-dealer Alpaca.

As we await the speeches from key financial figures and anticipate token unlocks from Starknet, Onyxcoin, Sei, and EigenLayer, stay tuned to our daily digest for the most influential events across the digital asset ecosystem.

Disclaimer: The information provided in this article is for informational purposes only and is not intended as legal, tax, investment, financial, or other advice.

The post Debacle at MANTRA: OM Token Crash Ignites Liquidations and Accusations, Laser Digital Denies Involvement appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.