BUSINESS

MANTRA Blockchain Halted After Exploit, Token Crashes 18.5% to All-Time Low

PUBLISHED Aug 21, 2026, 2:47 PM ET

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MANTRA Chain halted block production after a security incident tied to a vulnerability in an upstream software dependency, temporarily freezing transactions, validators, bridges, deposits and withdrawals. MANTRA said on Aug. 21 that the incident was isolated to its Cosmos EVM module and affected two MANTRA-managed wallet addresses before containment. The company said no user funds were exploited and that engineers were testing a patch before coordinating a validator restart. The network had initially been halted as a precaution without a disclosed cause or restoration timetable. The MANTRA token, formerly OM, fell to an all-time low of $0.004126, about 18.5% below the cited prior price, before partially recovering. Trading volume rose nearly 600% to about $24 million, according to CoinGecko-based reports. Major exchanges suspended MANTRA token deposits and withdrawals. The incident follows OM’s more than 90% April 2025 collapse. Inveniam Capital Partners is pursuing an acquisition announced for the third quarter.

By Sarah Whitman | JQJO News

Timeline of Events

On April 13, 2025, OM collapsed more than ninety percent.
On August 18, 2026, MANTRA Zone launched before the incident.
On August 20, 2026, MANTRA halted operations after detecting incident.
On August 20, 2026, exchanges suspended MANTRA deposits and withdrawals.
On August 21, 2026, attackers exploited an upstream dependency vulnerability.
On August 21, 2026, MANTRA froze validators, transactions, bridges, endpoints.
On August 21, 2026, token reached its $0.004126 all-time low.
On August 21, 2026, MANTRA identified cause and contained threat.
Over coming days, validators should await verified patches before restarting.
Over coming days, exchanges may maintain transfer restrictions pending confirmation.
During coming weeks, MANTRA should publish a detailed postmortem report.
During coming months, acquisition timing may face additional market scrutiny.
Over coming years, dependency security will influence blockchain institutional confidence.

News Intelligence

Immediate US impact: U.S. crypto investors faced temporary transfer restrictions and heightened volatility.
Possible long-term US impact: Long-term U.S. confidence in tokenized-asset infrastructure may face added scrutiny.
Most affected groups: Investors, exchanges, validators, institutions, and tokenization businesses face the disruption.
Reader priority: Readers should prioritize MANTRA statements, exchange notices, independent onchain evidence.