OKX Issues Statement on Price Fluctuation of MANTRA Token OM

Techub News Update: OKX has issued a statement regarding the MANTRA (OM) incident, stating that they have found evidence indicating that multiple interconnected and colluding accounts used large amounts of OM as collateral to borrow significant amounts of USDT, artificially inflating the OM price. Their risk team has correctly flagged this abnormal activity and contacted the account holders, requesting corrective actions. However, they refused to cooperate. To mitigate risk, OKX has imposed restrictions on these related accounts. Shortly afterward, the OM price plummeted. OKX only liquidated a very small amount of OM, but the sharp decline caused massive losses, which were fully covered by the OKX Security Fund. Multiple third-party analyses suggest that the price crash was mainly driven by ongoing trading activities outside of this exchange. The origin of these abnormal large amounts of OM remains unclear, as does why these individual groups hold and control such a large supply of tokens. OKX has submitted all evidence and documents to regulators and law enforcement agencies. Several lawsuits and legal proceedings are currently underway.