An Insider-linked wallet moved $41M in OM to OKX just before the crash, sparking panic and triggering a 90% price collapse.
The OKX CEO slammed the incident as a “scandal” and pledged complete transparency on liquidation and collateral data.
The recent collapse of MANTRA DAO’s (OM) token has stirred controversy across the crypto space, but none more forcefully than the reaction from OKX CEO, who labelled the event a “big scandal to the whole crypto industry.” With $OM losing over 90% of its value within hours on April 13, the CEO’s calls for accountability and transparency are now echoing across the sector.
The crash wiped out over $5.5 billion in market value and was linked to a suspicious $41 million deposit, reportedly associated with insiders.
OKX’s CEO didn’t hold back, calling the event a “scandal to the whole crypto industry.” He pledged to release full collateral and liquidation data, pushing for on-chain transparency in light of the controversy.
“All of the onchain unlock and deposit data is public, all major exchanges’ collateral and liquidation data can be investigated. OKX will make all of the reports ready!,” he wrote on X.
According to on-chain analyst Amir Ormu, a wallet linked to @LaserDigital_ moved 3.92 million OM tokens into OKX. The wallet had reportedly received its OM stash from market maker GSR a year ago.
Amid the panic, rumors of discounted OTC deals at 50% market value spread, triggering a cascade of liquidations on OKX and Binance—particularly during low-liquidity hours in Asia.
MANTRA’s Denial and Market Chaos as Liquidations Escalate
As panic gripped the market, rumours swirled about discounted OTC deals at half-market value. These whispers triggered a wave of sell-offs that accelerated as centralized exchanges like OKX and Binance allegedly initiated forced liquidations due to cascading margin calls during low-liquidity hours—early morning Asia time.
In response, MANTRA co-founder John Patrick Mullin issued a statement via X, deflecting blame toward centralized platforms:
“OM market movements were triggered by reckless forced closures initiated by centralized exchanges,” Mullin said, calling the timing “negligent at best, or possibly intentional.”
OKX’s CEO, however, stressed the importance of open-chain forensics and collateral traceability.
His emphasis on making OKX’s internal data available for inspection was seen as a direct challenge to the opacity that still surrounds many high-volume crypto transactions.
Mullin maintained that no insider sales took place during the crash and promised a community call to address investor concerns. Yet the damage had already been done: OM fell from $6.33 to under $0.50 before mildly rebounding to $0.72 the following day.
Despite Binance’s comment that “cross-exchange liquidations” likely played a role, many investors found the explanations unsatisfactory. One user wrote in a Telegram group:
“Hundreds of millions wiped out in minutes. This was the perfect storm—team wallets, OTC undercutting, overleveraged longs, and radio silence.”
Real World Asset Sector Resilient, But Insider Risk Remains
The crash sent shockwaves through the RWA crypto sector, causing a 13.3% decline in its total market cap, which settled at $41 billion, per CoinMarketCap. However, analysts insist the crash is isolated to OM and does not reflect on the broader market’s trajectory.
A joint report by Ripple and Boston Consulting Group remains bullish, predicting the RWA market will soar to $18.9 trillion by 2033, thanks to the growing demand for tokenized bonds, real estate, and commodities.
Still, the OM crash has highlighted critical vulnerabilities—especially when a handful of wallets control most of the supply.
“This wasn’t just a project collapse—it exposed how fragile price structures can be when concentrated holdings and opaque exchange practices meet speculation,” one industry researcher said.
As OKX prepares to release its internal findings and the community waits for further statements from MANTRA, one truth is clear: the crypto industry’s credibility is at stake, and transparency is no longer optional—it’s survival.
