This Mantra Holder Lost $3.3 Million After the OM Price Crash, Legal Action Ahead – Here’s What Happened
As we reported late last night, the Mantra price crashed over 90% and this is now the hottest story in crypto. Some reports are floating around that this is the worst single-day price crash in history with over $5.5 billion market cap wiped out within minutes basically.
What you'll learn 👉
Major Investor Threatens Legal Action After Devastating Loss
A major investor has publicly expressed outrage after losing over 90% of their $3.5 million investment in Mantra (OM), with their holdings now worth only around $200,000. The investor claims they were initially attracted to the project because of supposed partnerships with a UAE real estate company, which they now believe may have been misleading.
In their statement, the investor accused the Mantra team of running what amounts to a liquidity exit scam, suggesting that instead of funding development, their investment “subsidized insiders” from both the Binance and OM teams. Taking matters further, they’ve engaged Burwick Law, a crypto-focused law firm, signaling potential lawsuits unless the situation is publicly acknowledged and resolved.
Dear @MANTRA_Chain @_RichardTeng @cz_binance
— JB (@Jeetburner) April 13, 2025
I invested $3,500,000 into your RWA token, $OM. That investment is now worth barely $200,000, a drop of over 90%.
My intention was to support the future of RWAs. I conducted thorough due diligence, and the supposed partnership with… pic.twitter.com/G11642FWYC
Beyond their personal financial loss, the investor framed this situation as a test of accountability in Web3, where transparency should be a fundamental principle.
Anatomy of a Crypto Collapse: What Really Happened
Crypto analyst Sjuul provided technical insight into the mechanics behind the devastating crash. According to him, trouble began when a wallet linked to the Mantra team deposited 3.9 million OM tokens to cryptocurrency exchange OKX, immediately triggering alarm throughout the community.
One major red flag that had existed all along was extreme centralization – the team reportedly controlled 90% of the token supply, giving them enormous power to influence the price. Trust issues had been building for some time, with the community growing concerned about the team’s use of market makers to artificially prop up prices, quiet changes to tokenomics, and delays in a promised community airdrop.
$OM is the $LUNA of this cycle.
— Sjuul | AltCryptoGems (@AltCryptoGems) April 13, 2025
$6B+ wiped out within 30 minutes.
But why did it happen?
🧵: THE $OM CRASH DECODED👇
( MUST REPOST AND LIKE ) pic.twitter.com/7Cz8ymsrHH
When the large OKX deposit was followed by significant selling, community fears of a dump were confirmed. Making matters worse, private buyers who had received discounted tokens (up to 50% off) through over-the-counter deals found themselves in the red when prices fell by 50% and this triggered panic selling.
What followed was a devastating cascade: retail selling pressure combined with triggered stop-losses and leverage liquidations created a perfect storm. Within just one hour, the OM price collapsed by 90%, wiping out over $5.5 billion in value and devastating community members, many of whom had no idea what was happening behind closed doors.
This wasn’t simply a market correction but a systemic failure enabled by poor tokenomics, questionable practices, and centralized control. The fact that an institutional-level investor is now threatening legal action adds significant weight to the situation, potentially making this one of the first major real-world asset (RWA) related token controversies to face broader industry and legal scrutiny.
Mantra’s team still claims they have nothing to do with this price crash and days ahead will give us more details of what exactly happened.
Read also: Kaspa’s Comeback? The Truth Behind the Hype, the Crash, and What’s Next
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