MANTRA Chain has suspended new OM token unbonding transactions after a wallet security exploit allowed attackers to withdraw staked assets without their owners' consent. The incident involves Web3Auth and Keplr wallets, raising concerns among users whose tokens remain locked in staking.

In response, the blockchain team has frozen attacker controlled wallets through Governance Proposal 41 and called on affected users to redelegate their tokens before the unbonding period expires. The restriction temporarily changes how stakers can exit their positions.

MANTRA Chain Suspends New OM Unbonding Transactions

MANTRA Chain, an EVM Layer 1 blockchain focused on real world assets, has halted all new unbonding transactions for its OM token following an exploit involving Web3Auth and Keplr wallets.

The attack allowed unauthorized withdrawals from staked wallets, leaving token holders exposed even when their assets were committed to staking. MANTRA's decision to suspend new unbonding requests aims to prevent attackers from claiming additional funds through the staking withdrawal process.

The restriction applies specifically to newly initiated unbonding transactions. Users who already started unbonding before the suspension will continue through their existing processes without interruption.

Governance Proposal 41 Freezes Hacker Controlled Wallets

MANTRA Chain has also taken action against attacker controlled wallets through Governance Proposal 41, freezing the addresses associated with the exploit.

The governance measure forms part of the network's response to unauthorized staking withdrawals. By restricting the hacker controlled wallets, MANTRA aims to prevent further movement or claims involving compromised assets.

The wallet incident is connected to a wider security problem involving Web3Auth and Keplr. The exploit has affected users whose staked assets could be accessed without their authorization, making the unbonding period particularly important for those attempting to protect their holdings.

Dear MANTRA community,

As a direct result of the ongoing Web3Auth & Keplr wallet/private key exploit, we have received numerous complaints from the community about the hackers unbonding their staked MANTRA tokens without their consent. This comes after any liquid MANTRA tokens have already been stolen. As you have seen in Gov Prop 41, we have already frozen several of the hackers’ wallets as we support @Web3Auth & @keplrwallet in their recovery efforts.

In an attempt to support our community and anyone that may be under attack by these hackers, we are putting through an emergency pause on all unbonding transactions for 7 days, as we aim to avoid any further damage. We will review this unbonding pause in 7 days, and reserve the right to make further pauses. We don’t take this action lightly, however, we believe this is in the best interest of our community and is necessary to protect you from further damage due to this upstream exploit.

To be clear, this does NOT freeze unbondings which are already in progress. You will need to redelegate before the 8-day unbonding process completes to prevent the hackers from claiming them and sending them to an address you don’t control. Once you have relegated, the subsequent unbonding will be paused until we decide to discontinue the unbonding freeze.

We will continue to keep the community abreast of the ongoing situation.

txid:

8ce659501371072441ab336681e55794719ae0ad155b11e7269acbc527c139e8

— MANTRA | The EVM L1 for RWAs (@MANTRA_Chain) November 13, 2026

MANTRA Urges Stakers to Redelegate Within Eight Days

MANTRA Chain has urged users currently within the eight day unbonding window to redelegate their tokens promptly.

Redelegation is particularly important for holders whose assets are already moving through the unbonding process. The team wants users to act before the withdrawal window reaches completion, helping prevent unauthorized claims against their staked holdings.

The eight day period creates a limited timeframe for affected users to respond. MANTRA's instructions specifically focus on redelegating tokens rather than allowing the unbonding process to proceed toward an unrestricted claim.

Existing unbonding transactions remain unaffected by the new suspension, meaning users who had already initiated withdrawals will continue under the previous process.

Seven Day Review Planned as Cosmos Wallet Exploit Expands

MANTRA Chain plans to review the unbonding suspension after seven days. The temporary restriction gives the team time to assess the security situation, assist affected users and determine whether additional action is required.

The incident also forms part of a broader Cosmos ecosystem security issue involving millions in exposed assets. The scale of the wallet exploit has placed additional attention on protecting staked funds across affected networks.

MANTRA's response combines the suspension of new unbonding requests, wallet freezes through Governance Proposal 41 and recovery assistance for users facing unauthorized access. The seven day review will determine how the network proceeds with its temporary staking restrictions while recovery efforts continue.

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