Allegations Surrounding the OM Token Collapse
The OM token from Mantra recently saw its value plunge by over 90%, sparking widespread concern and investigation. Blockchain sleuth ZachXBT has brought serious allegations against Denko Mancheski, the founder of Reef Finance, along with another individual known by the alias “Fukogoryushu.”
According to ZachXBT, both parties allegedly attempted to secure large loans using OM tokens as collateral shortly before the token’s sharp drop. This timing has raised eyebrows, suggesting possible insider involvement that may have triggered or accelerated the token’s crash.
Past Controversies and Suspicious Activity
This isn’t the first time Mancheski or Reef Finance has faced scrutiny. In 2024, Binance delisted the REEF token after concerns emerged about potential market manipulation under Mancheski’s leadership. An earlier $80 million OTC deal with Alameda Research in 2021 had also cast shadows over the project.
In the days preceding the OM crash, on-chain data revealed unusual activity. Seventeen wallets moved roughly 43.6 million OM tokens—about 4.5% of its total circulating supply—onto exchanges. Some of these wallets were reportedly tied to big-name investors like Laser Digital and Shorooq Partners. Both firms have denied any involvement, stating that their wallets were misidentified.
Mantra Responds as Investigations Unfold
John Patrick Mullin, CEO of Mantra, attributes the token’s downfall to “reckless forced closures” on centralized exchanges during low-liquidity periods. He firmly denied any insider activity, emphasizing that team-held tokens are locked and subject to long-term vesting schedules.
Despite these reassurances, the crypto community continues to monitor developments closely. With questions still unanswered, investors are eager for clarity on what exactly led to the dramatic collapse of OM and whether insider actions played a defining role.
