MANTRA Chain halted its Layer 1 blockchain after an exploit affected an external software dependency, freezing transactions while developers prepared a patch and investigated the incident. The MANTRA token fell to a record low before the network stopped producing blocks, while validators, bridges, deposits and withdrawals remained offline.
The project said its engineering and security teams were working with external partners. It also asked exchange and ecosystem partners to suspend transactions involving its native token until further notice.
MANTRA fell 18.5% from $0.005060 to an all-time low of $0.004126 at about 11:10 p.m. UTC Thursday, according to the supplied CoinGecko data. The token later recovered to about $0.0044. Still, it remained roughly 10% lower over 24 hours, while trading volume jumped nearly 600% to $24 million.
MANTRA Chain produced its last recorded block at about 11:13 p.m. UTC, only minutes after the token reached its low. The project announced the network halt roughly 30 minutes later. The team has not established whether the token decline resulted from the exploit.
Security incidents can coincide with rapid market moves as traders reassess exposure to affected assets. For now, the project has not confirmed such a connection. Therefore, the timing shows correlation rather than an established cause.
MANTRA initially described the problem only as an incident and froze transactions and network endpoints while its teams investigated the disruption. A later update identified a vulnerability in an ‘upstream dependency.’ The term refers to software that MANTRA Chain uses but that another developer or organization maintains.
The team said it had identified the vulnerability and had started preparing a patched release. Validators remain offline while developers prepare and test that software fix. Restarting the blockchain will require coordination among validators, which verify transactions and support normal network operations. Consequently, the chain cannot simply resume through a single operator.
Meanwhile, MANTRA is tracing fund movements and coordinating with exchanges while assessing the incident. The project has not disclosed which external software contained the vulnerability. It has also not explained how the exploit worked or confirmed whether attackers removed any assets. Its team said the full scope remained under assessment.
Also Read: Is Mantra the Next LUNA? OM Token Sinks Over 90% in 24 Hours
The disruption affects MANTRA's public endpoints, validators, and bridge operations. It also affects MANTRA-managed connections that allow communication with other blockchain networks.
Deposits and withdrawals involving MANTRA Chain also remain unavailable. The project advised users to avoid transactions until it releases additional information about network restoration.
The latest incident follows a difficult period for the real-world asset blockchain. MANTRA focuses on bringing traditional financial assets, including funds and bonds, onto blockchain infrastructure.
Its former OM token collapsed by more than 90% in April 2025 during a sharp sell-off. The decline erased more than $5 billion in market value. The company later underwent restructuring and layoffs. In June, strategic backer Inveniam Capital Partners announced plans to acquire the project after investing $20 million in MANTRA last year.
The acquisition is expected to close during the third quarter. The network incident has occurred while that transaction remains pending.
MANTRA Chain remains offline after developers traced the incident to an upstream software vulnerability. The token hit a record low, while validators, bridges, deposits and withdrawals remain affected. Developers are testing a patch as investigators trace funds and determine the exploit's full impact.