Woofun AI reports that the MANTRA blockchain, a network dedicated to bringing traditional financial assets such as funds and bonds onchain, ceased block production and halted operations following a software exploit. The network's sudden stoppage occurred shortly after its native token experienced a severe price collapse, marking a critical security incident for the platform. This operational freeze was confirmed via an official X post, signaling a complete suspension of network activity while the team investigates the breach.

The market reaction was immediate and severe, with the MANTRA token plummeting 18.5% to a record low of $0.004126 from a pre-incident price of $0.005060 around 11:10 p.m. UTC Thursday. Although the asset later recovered slightly to approximately $0.0044, it remained down roughly 10% over the preceding 24 hours. Trading volume surged nearly 600% to $24 million during this period, reflecting intense sell pressure and rapid risk reassessment by traders. The token's all-time low was recorded just minutes before the network produced its last block, highlighting the tight correlation between the security breach and market sentiment.

Network operations were effectively frozen as the last recorded block was generated at approximately 11:13 p.m. UTC. Roughly half an hour later, the project announced the halt, confirming that all endpoints and transactions were currently frozen. This precautionary measure means that deposits and withdrawals to and from MANTRA Chain are temporarily affected, disrupting user access to their assets. Affected exchanges also paused deposit and withdrawal functions, further isolating the network from external liquidity sources during the investigation phase.

Woofun AI data shows that the root cause was identified as a vulnerability in an "upstream dependency", referring to software utilized by MANTRA Chain but developed outside its core network. The team stated they have identified the vulnerability and are proceeding to prepare a patched release, but validators remain offline while developers test the fix. Restarting the blockchain will require coordination with the wider group of operators that verify transactions and maintain network integrity. The project is also tracing fund movements and working with exchanges to assess the damage, though it has not disclosed which specific software was exploited, how the attack was executed, or whether any assets were lost. "Our assessment of the full impact is ongoing and we are not yet in a position to confirm the complete scope", MANTRA said, indicating that the full extent of the compromise remains unknown.

The outage has impacted critical infrastructure components, including the chain's public endpoints, validators, bridge operations, and MANTRA-managed links used to communicate with other blockchains. These disruptions prevent cross-chain interactions and isolate the network from broader DeFi ecosystems. The freeze on endpoints ensures that no new transactions can be processed, effectively pausing all economic activity on the chain. This comprehensive shutdown underscores the severity of the exploit and the necessity of halting operations to prevent further potential losses or unauthorized access.

This incident follows a difficult period for the project, which previously saw its former OM token collapse more than 90% in April 2025 during a bizarre sell-off that wiped out more than $5 billion in market value. Inveniam Capital Partners, which invested $20 million in MANTRA last year, announced in June that it planned to acquire the project. The deal is expected to close in the third quarter, potentially reshaping the company's strategic direction. This marks the second major crisis for the platform in less than two years, raising questions about its long-term stability and governance resilience.