OKX and Mantra Clash Over Alleged OM Token Manipulation and Upcoming Migration
OKX and the Mantra project are publicly disputing events around the OM token after OKX accused coordinated accounts of using large OM holdings as collateral to borrow USDT and drive the token price up and then trigger a sharp decline. OKX says its risk team flagged suspicious borrowing and leveraged positions, requested position adjustments, and — when accounts did not cooperate — intervened by taking control of implicated accounts and liquidating a limited amount of OM. OKX reports that these actions, plus external perpetual trading and cross-exchange dynamics, amplified a crash that previously wiped more than 90% of OM’s value in April (about $5 billion erased). Losses from related liquidations were absorbed by OKX’s Security Fund; the exchange says it has submitted evidence to regulators and that multiple litigations are underway. Mantra CEO JP (John Patrick) Mullin denies OKX’s characterization, has demanded transparency about how many OM tokens OKX holds on-exchange versus in its own balance sheet, and criticized what it says were misleading migration timelines published by OKX. Mantra confirmed the ERC-20 OM token will be deprecated on 15 January 2026 and that a protocol-level chain upgrade with a 1:4 token split is planned — a migration that requires no user action. The situation remains under investigation with legal and regulatory scrutiny. Primary keywords: OM token, OKX, Mantra, price manipulation, token migration. Secondary keywords: USDT loans, liquidation, Security Fund, token split, regulatory investigation.
Bearish
The dispute and OKX’s claims of coordinated borrowing, forced liquidations and regulatory and legal actions increase downside pressure on OM. Historical context — a >90% crash in April that erased roughly $5 billion in market value — shows the token is vulnerable to concentrated holdings, margin mechanics and cross-exchange cascades. Short-term, the news raises liquidation risk, volatility and reduced market confidence, making OM prone to further sell-offs or disorderly price moves. Medium-term, uncertainty around exchange-held supply disclosure, ongoing litigation and migration timelines (ERC‑20 deprecation on 15 January 2026 and a planned 1:4 split) are likely to keep trading volumes depressed and deter leveraged positions until clarity is provided. The token migration could be neutral if executed smoothly, but combined with legal and regulatory scrutiny it is more likely to be a net negative for OM price in both near and medium terms.