MANTRA Chain, a Layer 1 blockchain focused on real-world asset tokenisation, halted network operations on 21 August 2026, following a security incident involving a vulnerability in an upstream software dependency.
The network froze transactions and endpoints while developers and security teams investigated the incident. Validators were taken offline, and cryptocurrency exchanges were asked to suspend deposits and withdrawals linked to MANTRA Chain.
According to the team, the issue was isolated to the chain’s Cosmos EVM module and affected two wallet addresses before containment was achieved. MANTRA maintains that no user funds were exploited and said the chain halt and pending patch are precautionary steps to guard against further risk.
According to its official page, MANTRA Chain has temporarily disabled transactions, transfers, and staking activities until remediation procedures are tried, according to its official page. While the team works to restore services, the network stays unavailable.
So far, the team has not disclosed the full impact of the attack or confirmed that any specific amount of user funds was stolen, created, or otherwise compromised.
The team wrote on X, “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. We don’t have a root cause or timeline to share yet. We’ll post here and on our official channels as soon as we have verified information. Please rely only on official MANTRA channels for updates.”
We have identified the root cause of the incident and contained the immediate threat.
The incident was isolated to the Cosmos EVM module of MANTRA Chain and affected two wallet addresses before we achieved containment.
No user funds were exploited.
The chain halt and upcoming… pic.twitter.com/jpY6U5wzQ9
— MANTRA | The EVM L1 for RWAs (@MANTRA_Chain) August 21, 2026
The recovery procedure used by MANTRA goes beyond just restarting the network and applying a software patch. According to the project, before the blockchain can securely resume operations, validators must collaborate while developers prepare and test improvements.
MANTRA said it took a full network-state snapshot before beginning the restart process. The snapshot provides a reference point for reviewing the incident and ensuring the blockchain returns to a consistent state.
A complete network snapshot was collected prior to the start of recovery attempts, according to MANTRA, and the chain halt has not impacted user funds. According to the team, a patched v8.4.0 release that fixes the vulnerability is being tested on the DuKong testnet. If testing goes well, a mainnet upgrade and restart are scheduled for later on August 21. Until the coordinated restart is formally announced, validators have been directed to keep mainnet nodes offline.
Reports that make use of blockchain and market reports suggest that the MANTRA token hit its lowest value on the night of 20 August. The last block in the blockchain was produced a couple of minutes after this, at 11:13 p.m. UTC.
At 11:44 p.m. UTC, MANTRA issued its first announcement, declaring that the chain has stopped operating, which means that all the endpoints are blocked and all transactions are frozen. At that point of time, it was not known what the reason for the problem was and how long it would take to get everything back to normal.
As per the latest update, MANTRA said it has identified the root cause of the incident and contained the threat, with the issue limited to the chain’s Cosmos EVM module and affecting two wallet addresses. The team said no user funds were exploited and described the network halt and forthcoming patch as precautionary measures to prevent further risk.
The security incident is just one of many difficulties MANTRA has encountered in the past year. MANTRA’s previous OM token lost about $5 billion in market value in April 2025 when it dropped more than 90 per cent, from over $6.30 to less than $0.50. Some scholars disagreed with MANTRA’s claim that the reduction was caused by forced exchange liquidations.
MANTRA announced layoffs and reorganisation in January 2026 with the goal of cutting expenses and increasing capital efficiency. 2025 was a particularly challenging year for the project, according to CEO John Patrick Mullin.
In June 2026, Inveniam Capital Partners announced plans to acquire MANTRA after investing $20 million in the project in 2025. The deal was expected to close in the third quarter.
MANTRA also completed a one-for-four token denomination change in March 2026, moving to the current token structure. The change did not alter holders’ proportional value, meaning historical OM prices must be adjusted when comparing them with the current token price.
