MANTRA blockchain halts operations after security incident in Cosmos EVM module
MANTRA pauses blockchain after security issue
The MANTRA blockchain, a Layer 1 network designed to support regulated real-world assets, has halted all transactions following a security incident. The team reported the issue stemmed from the Cosmos EVM module, a component that allows the blockchain to run Ethereum-compatible applications. The network has been offline since Thursday evening.
MANTRA disclosed the halt at 8:10 p.m. ET on August 20, stating that all endpoints and transactions were frozen. The team initially had no explanation for the cause or a timeline for resolution. Nearly ten hours later, MANTRA announced it had identified and contained the issue, which affected two wallet addresses managed by the company. The team confirmed no user funds were lost.
Key details of the incident
- The MANTRA blockchain was paused due to a security issue in its Cosmos EVM module.
- The incident affected two MANTRA-managed wallet addresses, with no indication of user, exchange, or partner funds being impacted.
- The network remains offline as of Friday morning, with a potential restart targeted within the day.
- MANTRA has not disclosed the amount involved or whether assets moved out of the affected wallets.
- A post-mortem report is promised but has not yet been published.
What MANTRA has confirmed
MANTRA confirmed the following details about the incident:
- The blockchain was halted late on August 20 after detecting a security issue.
- The problem was isolated to the Cosmos EVM module, which provides Ethereum compatibility.
- Two wallet addresses controlled by MANTRA were affected before the team contained the threat.
- No user, exchange, or partner funds were exploited or lost.
- The team is testing a patched version on its DuKong testnet and coordinating with validators for a restart.
Unanswered questions about the halt
Several key details remain unclear:
- MANTRA has not specified whether assets were moved out of the two affected wallets.
- The exact flaw or vulnerability in the Cosmos EVM module has not been named.
- The team has not confirmed which version of the Cosmos EVM stack the mainnet was running.
- No timeline has been provided for when the blockchain will resume operations.
Impact on MANTRA’s operations and token
The halt affects a blockchain that supports regulated real-world assets, including a stablecoin called mantraUSD, which is backed by short-term U.S. Treasuries. MANTRA also hosts a Layer 2 network that borrows security from the MANTRA Chain. The pause in operations comes as Inveniam Capital Partners works to finalize its acquisition of MANTRA, expected to close in the third quarter of 2026.
The MANTRA token, which was renamed from OM earlier this year, hit an all-time low of $0.0041 about an hour before the halt was disclosed. The token recovered slightly to $0.0048 by Friday afternoon, down roughly 4% over 24 hours. The token’s market value stands at $26.9 million, with $30.3 million in 24-hour trading volume.
Previous security incident in Cosmos EVM
This is the second time in seven months that MANTRA has been involved in a security event related to the Cosmos EVM codebase. In January, an attacker exploited a bug in the ICS20 precompile to drain roughly $7 million from Saga’s EVM network. The flaw allowed the same token balance to be spent multiple times in a single transaction. Cosmos Labs identified 15 chains running the affected code, with only one exploited before others applied fixes. MANTRA has not confirmed whether the current incident involves a precompile or the same vulnerability.
Why this matters for MANTRA users and partners
The halt disrupts settlement on a blockchain designed to hold regulated assets, including tokenized securities. MANTRA’s validator set includes Securitize, a platform behind BlackRock’s BUIDL tokenized treasury fund. The pause also affects mantraUSD, a stablecoin backed by U.S. Treasuries, and a Layer 2 network that relies on MANTRA’s security. The incident occurs during a critical period as Inveniam Capital Partners finalizes its acquisition of MANTRA.
