MANTRA token plunges 18% to record low as blockchain halts after exploit

The token of MANTRA, a blockchain focused on putting traditional financial assets such as funds and bonds onchain, plunged 18.5% to a record low shortly before the network stopped producing blocks and was halted following a software exploit.

MANTRA fell from $0.005060 to an all-time low of $0.004126 around 11:10 p.m. UTC Thursday It later recovered to about $0.0044 but remained down roughly 10% over 24 hours, while trading volume jumped nearly 600% to $24 million

The network produced its last recorded block at about 11:13 p.m. UTC, minutes after the token touched its low. MANTRA announced the halt roughly half an hour later in an X post.

The project has not said whether the price drop was connected to the attack, though security incidents can trigger outsized moves as traders rapidly reassess the risk of holding the affected token.

We’re aware of an incident affecting MANTRA Chain and have halted the chain as a precaution while we investigate. All endpoints and transactions are currently frozen.

This means deposits and withdrawals to/from MANTRA Chain are temporarily affected. If you’re unsure how this…

— MANTRA | The EVM L1 for RWAs (@MANTRA_Chain) August 21, 2026

MANTRA initially said it had frozen all transactions and network endpoints as a precaution while investigating an incident. Deposits and withdrawals were also paused on affected exchanges.

A later update said an attacker had exploited a vulnerability in an “upstream dependency,” meaning software used by MANTRA Chain but developed outside the network itself.

“We have identified the vulnerability and are proceeding to prepare a patched release,” the team said.

MANTRA’s network operators, known as validators, remain offline while developers prepare and test the fix. Restarting the blockchain will require coordination with the wider group of operators that verify transactions and keep the network running.

The project is also tracing fund movements and working with exchanges while it assesses the damage. It has not disclosed which software was exploited, how the attack worked or whether any assets were lost.

“Our assessment of the full impact is ongoing and we are not yet in a position to confirm the complete scope,” MANTRA said.

The outage affects the chain’s public endpoints, validators, bridge operations and MANTRA-managed links used to communicate with other blockchains.

The incident follows a difficult period for the project. MANTRA’s former OM token collapsed more than 90% in April 2025 in a bizarre sell-off, wiping out more than $5 billion in market value.

Inveniam Capital Partners, which invested $20 million in MANTRA last year, said in June it planned to acquire the project. The deal is expected to close in the third quarter.

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