MANTRA halted its Layer 1 blockchain late Thursday after what the team called an incident in the chain's Cosmos EVM module, and said on Friday morning it had found the root cause and contained the threat. The network is still down.
MANTRA disclosed the halt at 8:10 p.m. ET on Aug. 20, saying all endpoints and transactions were frozen and that it had no root cause or timeline to share. Nine and a half hours later it posted that "the incident was isolated to the Cosmos EVM module of MANTRA Chain and affected two wallet addresses before we achieved containment," adding that "no user funds were exploited" and that chain resumption was "potentially targeted within the day."
Its status page narrowed that further: the two addresses were "MANTRA-managed wallets," and the team has "no indication that user, exchange, or partner funds were affected." MANTRA has not published the amount involved, named the flaw, or said whether assets moved out of the two wallets. A post mortem is promised.
The freeze stops settlement on a chain built to hold regulated real-world assets. MANTRA said in May that Securitize, the tokenization platform behind BlackRock's BUIDL, had joined its active validator set. The chain also hosts mantraUSD, a stablecoin MANTRA says is backed by short-term US Treasuries, and a Layer 2 that borrows MANTRA's security. The halt lands while Inveniam Capital Partners is still working to close its acquisition of the company.
