Pre-crash large-scale OM token transfers by major Mantra investors raise insider activity questions

Blockchain analysts have identified large-scale token transfers by major Mantra investors in the days leading up to the sharp collapse of the OM token

In the days leading up to the sharp collapse of Mantra (OM) on April 13, blockchain analysts identified large-scale token transfers by major Mantra investors, raising questions about insider activity and the stability of the project.

At least two wallets linked to Laser Digital, a strategic Mantra investor and a digital asset business backed by Nomura, were spotted dumping portions of their Mantra (OM) tokens to cryptocurrency exchanges.

According to blockchain analytics platform Lookonchain, which cited data from Arkham Intelligence, 17 wallets moved a combined 43.6 million OM tokens — worth about $227 million at the time — to exchanges before the crash.

The firm has since denied the reports, claiming that the referenced wallets were not associated with Laser Digital.

Source: Lookonchain

Millions in OM moved to Binance, OKX

One Laser Digital-linked wallet sent about 6.5 million OM tokens ($41.6 million at the time) to OKX in seven transactions since April 11, Arkham data shows.

The last recorded transaction from the wallet occurred on April 11 at around 10:00 pm UTC, days before the Mantra crash, which took place on April 13 at roughly 7:00 pm UTC, according to data from CoinGecko.

Another wallet sent 2.2 million OM (worth $13 million) to Binance in a series of transfers starting April 3.

The data also indicates that Laser Digital may have begun reducing its OM holdings as early as February. The wallets linked to the firm reportedly received a large portion of their OM from crypto trading firm GSR in 2023.

Mantra (OM) outflows from one of the wallets linked to Laser Digital. Source: Arkham

Laser Digital subsequently denied reports that linked the firm to the OM volatility, asserting that the tagged wallets did not belong to Laser.

"Laser has no involvement in the recent price collapse of $OM," Laser stated in an X post on April 14. Assertions circulating on social media that link Laser to 'investor selling' are factually incorrect and misleading," the firm added.

Arkham did not immediately respond to Cointelegraph’s request to comment on Laser Digital's wallets' tags.

Action from other Mantra investors

Laser Digital wasn't the only Mantra investor spotted before the OM collapse.

According to Lookonchain data, a wallet associated with Shane Shin, a founding partner of Shorooq Partners, received 2 million OM tokens on April 13 at 11:52 am UTC, hours before the crash.

The tokens came from a previously dormant wallet that received 2.75 million OM in April 2024, Lookonchain reported.

Mantra (OM) flows by a wallet potentially linked to Shorooq's Shane Shin. Source: Arkham

Both Laser Digital and Shorooq were among the investors in the $109 million Mantra Ecosystem Fund (MEF) announced on April 7.

"It is important to note up front that Shorooq (its funds and founding partners) and Mantra (management and team members) have not sold OM tokens in the lead up to, or during, this crash," a spokesperson for Shorooq told Cointelegraph.

The representative also emphasized that Shorooq is an equity investor in Mantra, not solely a token investor. "This means that our focus is on the long-term growth of the project," the spokesperson added.

Cointelegraph contacted Mantra regarding the OM token collapse and its implications for the MEF but had not received a response by the time of publication.

Binance attributes OM collapse to ‘cross-exchange liquidations’

As OKX and Binance were among exchanges that saw significant OM activity before and during the crash, both exchanges addressed the issue directly. OKX founder Star Xu called the incident a "big scandal to the whole crypto industry."

While Mantra CEO John Mullin attributed the OM crash to one exchange, Binance hinted at "cross-exchange liquidations."

"Our initial findings indicate that the developments over the past day are a result of cross-exchange liquidations," Binance said in an announcement on April 14.

In an update on April 14, OKX said that Mantra's tokenomics had gone through major changes since October 2024 and flagged suspicious activity across multiple exchanges.