OKX Exposes Market Manipulation Behind OM Token Crash, Security Fund Covers $724M in Losses

In a significant disclosure, cryptocurrency exchange OKX has detailed the orchestrated market manipulation that led to the dramatic price crash of MANTRA's OM token in April 2025. The exchange's investigation revealed a coordinated scheme involving colluding accounts that used borrowed USDT to artificially inflate the token's value before engineering a collapse, resulting in substantial market disruption. OKX's robust risk monitoring systems successfully flagged the suspicious activity early, allowing the exchange to intervene and mitigate further damage. Crucially, OKX has confirmed that its $724 million Security Fund was deployed in full to cover all verified user losses stemming from the incident, demonstrating a strong commitment to user asset protection. The findings point to abnormal token accumulation patterns and the strategic use of leveraged USDT loans as key enablers of the manipulation. This event underscores the persistent challenges of market integrity in the digital asset space while highlighting the critical role of exchanges with advanced surveillance capabilities and substantial financial safeguards. For the broader crypto finance sector, OKX's handling of this crisis—combining transparent investigation, timely system intervention, and full financial restitution—sets a notable precedent for user protection and market oversight amidst evolving threats.

OKX Explains OM Token Price Crash: Market Manipulation Uncovered

OKX has revealed that the April 2025 price crash of MANTRA's OM token was orchestrated by colluding accounts using borrowed USDT to artificially inflate and then collapse the asset's value. The exchange's $724 million Security Fund fully covered user losses.

Evidence points to coordinated manipulation, with abnormal token holdings and Leveraged USDT loans enabling the scheme. OKX's risk systems flagged the activity early, but uncooperative account holders forced the exchange to intervene directly.

Regulators now possess complete documentation as multiple lawsuits progress. The incident coincides with MANTRA's planned token migration, raising questions about timing and motive.

MANTRA CEO Challenges OKX Over OM Token Migration Timeline and Transparency

MANTRA CEO John Patrick Mullin has publicly criticized OKX for its handling of the OM token migration process, citing misinformation and lack of consultation. The conflict stems from preparations to migrate OM tokens to MANTRA’s new blockchain, reopening tensions from April when the token’s value plummeted over 90%, erasing $5 billion in market capitalization.

In an open letter on X, Mullin confirmed the ERC-20 OM token will be deprecated on January 15, 2026, followed by a chain upgrade and 1:4 token split. He demanded OKX disclose the breakdown of OM tokens held by users versus those on its balance sheet, emphasizing regulatory compliance and transparency. "OKX’s unilateral creation of specific dates without consultation has caused unnecessary market confusion," Mullin stated, accusing the exchange of spreading factual errors.