- The insider-linked wallet moved $41 million to OKX with OM just before the crash, causing panic and a 90% price collapse.
- OKX CEO condemned the incident as a “scandal” and pledged full transparency regarding liquidation and collateral data.
The recent collapse of Mantra Dao (OM) tokens has sparked controversy across the crypto space, but it's not more forced than the response from OKX CEO, who labeled it as “a major scandal across the crypto industry.” April 13thCEOs' demands for accountability and transparency are now reflected across the sector.
The crash wiped out more than $5.5 billion in market value and was linked to a suspicious $41 million deposit that is allegedly linked to insiders.
OKX CEOs didn't call the event a “scandal across the crypto industry.” He has pledged to release full collateral and liquidation data and promote transparency in the chain in light of the controversy.
“All on-chain unlocking and deposit data are publicly available and you can investigate the collateral and liquidation data for all major exchanges. OKX prepares all reports!” he writes to X.
According to on-chain analyst Amir Ormu, the wallet linked to @laserdigital_ has moved 3.92 million OM tokens to OKX. The wallet reportedly received the OM Stash from market maker GSR a year ago.
Amidst the panic, there are rumors of discounts on OTC trading with a 50% market value spread, causing a cascade of OKX and Binance liquidation, especially during Asian low-liquid times.
As liquidation escalates, mantra denial and market turmoil
When panic grabbed the market, rumors were swirling around OTC deals discounted at half-market value. These whispers sparked an accelerated wave of divestment as central exchanges such as OKX and Binance were said to have begun forced liquidation for cascade margin calls during low-liquid hours, i.e. Asian hours in the morning.
In response, Mantra co-founder John Patrick Marin issued a statement via X, distracting responsibility for the centralized platform.
“The movement in the OM market was caused by a reckless forced closure initiated by a central exchange,” Mullin called the timing “at best or perhaps intentional.”
However, OKX CEO highlighted the importance of open chain forensics and collateral traceability.
The emphasis on making OKX's internal data available for inspection was seen as a direct challenge to opacity surrounding many large amounts of crypto transactions.
Mullin claimed that insider sales were not made during the crash and has pledged a community call to address investor concerns. But the damage had already been done. OM fell from $6.33 to under $0.50, and the next day was modest to $0.72.
Despite Binance's comments that “exchange cross exchange liquidation” could have played a role, many investors found the explanation to be inadequate. One user wrote to the telegram group:
“Millidies were wiped out in minutes, and this was a perfect storm.
Real-world asset sectors are resilient, but insider risk remains
The collision sent shockwaves through the RWA Crypto sector, reducing the total market capitalization by 13.3% to $41 billion per CoinmarketCap. However, analysts argue that the crash is segregated into OM and does not reflect the broader market trajectory.
The joint report by Ripple and Boston Consulting Group remains bullish, predicting the RWA market will skyrocket to $18.9 trillion by 2033.
Still, OM crashes highlight important vulnerabilities, especially when a handful of wallets control most of the supply.
“This wasn't just a project collapse. It revealed how vulnerable the fragile price structure is when concentrated holdings and opaque exchange practices met speculation,” said a researcher from one industry.
One truth is clear as OKX prepares to release its internal findings and the community awaits further statement from the mantra. The credibility of the crypto industry is at stake, and transparency is no longer an option.
