MANTRA Chain has halted its blockchain and frozen all transactions while it investigates an unidentified incident on the network, leaving token deposits and withdrawals suspended on exchanges as engineering and security teams work to determine the cause.

Chain Halted as a Precaution

MANTRA Chain said it stopped the network as a precaution after detecting an incident affecting the Layer 1 blockchain. All endpoints and transactions remain frozen, preventing users from moving assets across the network while the investigation continues.

"We're aware of an incident affecting MANTRA Chain and have halted the chain as a precaution while we investigate," the team said. "All endpoints and transactions are currently frozen."

The project has not identified the root cause of the incident or said whether any assets were compromised. It has also not provided a timeline for restoring the network, and it advised users to avoid transactions until further information becomes available.

According to the project's status page, the incident is classified as a full outage affecting public endpoints, validators, bridge migration operations and MANTRA-managed Inter-Blockchain Communication (IBC) relays. Engineering and security teams are investigating the issue alongside external partners.

MANTRA also contacted exchanges and ecosystem partners, asking them to suspend deposits and withdrawals of the project's token. Upbit was among the exchanges that paused these services, although centralized trading can continue because internal trades do not require MANTRA Chain transactions.

With on-chain activity paused, the incident has also affected the basic functions users rely on to move assets between wallets and platforms, which is why exchanges were asked to stop deposit and withdrawal flows while the network remains offline.

Token Hits Record Low as Volume Surges

MANTRA's native token fell as much as 18.5% from its 24-hour high, touching a record low of about $0.004126 around 11 p.m. UTC on Thursday. It later recovered toward $0.0044 but remained down roughly 10% over the 24-hour period. Trading volume surged nearly 600% to approximately $24 million during the same period. MANTRA has not established a connection between the token's price decline and the network incident.

Data from the network's public RPC interface showed block 17,449,398, produced at 11:13 p.m. UTC on Thursday, as the latest block on the chain. MANTRA issued its first public notice about the incident roughly 30 minutes later.

The project has not disclosed whether the halt resulted from a security breach, a software problem or another technical issue. So far, the team has reported no confirmed loss of user funds.

Network to Stay Offline Until It Is Safe

MANTRA said it would keep the blockchain offline until its teams determine that operations can resume safely. The project plans to provide further updates as the investigation progresses, but it has not given an estimated recovery time.

"We will not resume the network until we are confident it is safe to do so," the team said.

MANTRA also warned users to be wary of people claiming they can provide recovery assistance, stressing that users do not need to take any action. The warning came as deposits, withdrawals and other on-chain transactions remained unavailable.

The incident comes as MANTRA prepares for a planned acquisition by its strategic backer, Inveniam Capital Partners. The transaction, which was announced in June, is expected to close during the third quarter of 2026.

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Sources: CoinCentral · Wu Blockchain on X: https://x.com/WuBlockchain/status/2090641124218314869?s=20