Key Highlights
- MANTRA has suspended new token unbonding transactions for seven days.
- The action follows an exploit involving Web3Auth and Keplr wallets that exposed users’ private keys.
- Attackers accessed users’ liquid MANTRA holdings and unbonded staked tokens without authorization.
MANTRA Suspends Token Unbonding After Wallet Exploit
MANTRA has temporarily suspended new token unbonding transactions for seven days as it responds to an ongoing exploit involving Web3Auth and Keplr wallets. The incident has allowed attackers to access users’ private keys, steal liquid MANTRA holdings and unstake MANTRA tokens without authorization.
In a statement on Friday, MANTRA said community members had reported that hackers were unbonding their staked tokens without consent after taking control of their liquid MANTRA assets. The reports indicate that the attack affected the security of users’ wallet access and their ability to control staked holdings.
MANTRA Freezes Wallets Linked to Attackers
MANTRA has already frozen several wallets associated with the attackers through Governance Proposal 41. The measure is part of the project’s response to limit further movement of assets linked to the exploit while the investigation and recovery work continue.
The project is working with Web3Auth and Keplr on recovery efforts. The seven-day suspension of new unbonding transactions is intended to provide additional time for the affected parties to assess the incident and coordinate a response.
Why This Matters
The incident highlights the risks associated with wallet infrastructure, private-key security and staking operations in the Web3 sector. Because the reported exploit involved both access to liquid MANTRA holdings and the unbonding of staked tokens, the response involves more than a conventional asset theft investigation. MANTRA’s wallet freezes and coordination with Web3Auth and Keplr represent the project’s immediate efforts to contain the reported activity and pursue recovery.
Frequently Asked Questions
Why did MANTRA suspend token unbonding?
MANTRA suspended new token unbonding transactions for seven days after an exploit involving Web3Auth and Keplr wallets allowed attackers to access private keys and unbond staked MANTRA tokens without users’ consent.
What happened to affected MANTRA users?
According to MANTRA, community members reported that hackers stole their liquid MANTRA holdings and then unbonded their staked tokens without authorization.
What steps has MANTRA taken?
MANTRA has frozen several wallets linked to the attackers through Governance Proposal 41 and is working with Web3Auth and Keplr on recovery efforts.
