Mantra’s $80 million OM token crash needs full forensic review

Mantra’s (CRYPTO:OM) founder John Mullin has initiated an $80 million burn of OM tokens to restore user confidence after the token’s crash in early April.

However, the exact causes behind the crash remain unclear, with blockchain experts emphasising that a detailed forensic investigation is necessary.

Natalie Newson, senior blockchain investigator at CertiK, told that basic blockchain analysis alone cannot substantiate claims of deliberate exploitation.

“A full forensic investigation, akin to what we saw post-FTX, would be needed to substantiate claims of calculated exploitation,” she explained, highlighting the challenges posed by over-the-counter (OTC) transactions.

Newson noted the importance of distinguishing between transparent onchain activity and the opaque nature of OTC deals, which involve large crypto trades conducted outside exchanges to reduce price volatility.

Mantra CEO Mullin disclosed in an April 15 interview with Coffeezilla that the team engaged in OTC transactions involving up to $30 million worth of OM tokens.

Newson said that the accumulation of roughly 100 million OM tokens by a whale likely resulted from secondary market transactions rather than direct insider activity.

Mullin has denied insider involvement, pointing out that blockchain analytics platform Arkham misidentified some wallets.

Newson added that tools like Arkham and Nansen provide directional clues but are insufficient to confirm coordinated insider behavior without access to offchain agreements and exchange records.

Frank Weert, co-founder of Whale Alert, also noted the difficulty in obtaining a complete transaction history from blockchain nodes.

Mantra has considered hiring a forensic auditor but had not made a decision as of mid-April.

Arkham did not respond to requests for comment on the incident.

At the time of reporting, the MANTRA (OM) price was $0.543.