Major Exchange Issues Statement on Altcoin Whose Price Fell 98 Percent – Who’s to Blame?

The cryptocurrency exchange OKX has issued a comprehensive public statement regarding the sharp price movements in the MANTRA (OM) token. The exchange announced that it has identified multiple linked accounts acting in a coordinated manner to artificially inflate the price of OM.

According to OKX, these accounts borrowed USDT using large amounts of OM as collateral, thereby driving up the token price. The exchange’s risk team flagged this as abnormal market activity and contacted the account holders, requesting corrective action. However, OKX stated that the parties involved refused to cooperate.

OKX announced that it had taken control of the linked accounts to prevent the risk from escalating, and that this process led to a sharp drop in the price of OM. The exchange stated that only a very limited portion of OM was liquidated, but that the entirety of the significant losses caused by the price collapse were covered by the OKX Insurance Fund.

The statement also noted that third-party analysis indicated the price drop was largely due to perpetual trading on platforms other than OKX. OKX added that the Security Fund functioned flawlessly as designed during this event.

A graph showing the drop in OM price.

OKX noted that critical unanswered questions remain regarding the incident, stating that the source of the unusually large amounts of OM tokens has not been explained and that it remains unclear how specific groups control a significant portion of the token supply. The exchange announced that all evidence and documentation have been submitted to regulatory bodies and law enforcement agencies, and that multiple legal processes are currently underway.

At the end of the statement, OKX argued that the MANTRA team was shifting the blame onto OKX instead of addressing the serious and suspicious activities that had occurred, which they called an unprofessional approach.

*This is not investment advice.

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