MANTRA Pauses Unbonding for 7 Days After Keplr Wallet Key Exploit

MANTRA Chain paused new unbonding transactions for seven days after users reported unauthorized unstaking of their tokens, The Coin Republic reported on November 13, citing a MANTRA community notice. MANTRA said the pause is meant to keep more tokens from reaching attackers while recovery work continues. It also said it froze several attacker wallets under Governance Proposal 41, according to the report.

The incident is linked to an exploit involving Web3Auth and the Keplr wallet. The Block reported on November 8 that a flaw in Web3Auth’s systems exposed the private keys of some Keplr users who signed up with Google or Apple login, and that Web3Auth moved about $5.6 million out of exposed wallets to keep it from an attacker. Keplr said the problem was not in its own code and that users with a recovery phrase or hardware wallet were not affected.

According to The Coin Republic, the attackers first took liquid MANTRA tokens from some wallets and then tried to unstake tokens still staked. The pause also applies to users who have not reported problems. Requests already in progress are not covered and will finish, and because unbonding takes eight days, MANTRA advised affected users to redelegate before their period ends. MANTRA plans to review the restriction afterward and may extend it.

MANTRA has not given a total for stolen funds, and the scale of the losses has not been independently confirmed. Crypto Times put the OM token down about 7.3% on the news.

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Sources:

• The Coin Republic: Mantra halts unbonding transactions for 7 days

• MANTRA Chain on X

• The Block: Web3Auth says it frontran hackers by moving $5.6 million out of exposed Keplr wallets