Manta Network (MANTA) suffers a DDoS attack after launching its token. Additionally, they have been accused of money laundering

✍️ 19 January, 2024 - 9:58 👤 Editor: Jakub Motyka

• Manta Network suffered a DDoS attack a day after issuing its MANTA token, affecting transactions and withdrawals on the network, but keeping all funds safe.
• Following its listing on the South Korean exchange Bithumb, Manta Network faces accusations of money laundering due to suspicious transactions.
• The latest news about cryptos on our Telegram channel.

Manta Network, a new emerging blockchain network, has recently suffered a distributed denial of service (DDoS) attack a day after issue your MANTA token.

This attack has caused longer than expected wait times for withdrawals and slowdowns on the network. In addition, it has coincided with allegations of money laundering, raising serious concerns about the credibility of the project.

The DDoS attack on Manta Network

Manta developers reported via a post on X (formerly known as Twitter) that the network had accumulated a large queue of recent transactions, resulting in longer transaction times and affected gas rates.

⚠️ Because of yesterday's DDoS attack, the network has accumulated a large queue of recent transactions. This is leading to longer transaction times and impacts on gas fees. We are aware of this issue and working to resolve it.

— Manta Network (🔱,🔱) #MantaNewParadigm (@MantaNetwork) January 19, 2024

The attack coincided with the initial Manta token issuance event, according to Kenny Li, co-founder of the network.

Manta is part of a new wave of blockchains that offer faster and lower-cost transactions than popular networks like Ethereum (ETH). These new networks are usually backed by large funds and market their blockchain extensively in crypto circles and social networks like X.

Accusations of money laundering with the MANTA token

Following the recent listing of Manta Network on the South Korean exchange Bithumb, allegations of money laundering have emerged, raising serious concerns about the credibility of the project and its compliance with South Korea's strict anti-money laundering regulations.

These accusations come from a tweet by Definalist, who pointed out a series of suspicious transactions related to the inclusion of Manta Network in Bithumb.

. @MantaNetwork was suspected of money laundering through Bithumb on the day of listing

- 2M $MANTA transferred to personal wallet of MANTA’s Korean BD
- 2M $MANTA was deposited into Bithumb deposit wallet, accounting for more than 75% of Bithumb’s total circulation volume.
-… pic.twitter.com/uMWq6J6D37

— Definalist (@definalist) January 18, 2024

It notes that two million MANTA tokens, the native cryptocurrency of Manta Network, were transferred to the personal wallet of Manta's Business Development representative in Korea.

The same two million MANTA tokens were subsequently deposited into the Bithumb deposit portfolio, representing more than 75% of Bithumb's total circulation volume . The price of MANTA skyrocketed to $230 in just five minutes after its listing on Bithumb.

The representative is alleged to have sold all two million MANTA tokens at prices ranging between 50 and 100 times the initial listing price. The BD representative then allegedly converted all proceeds to Ethereum and transferred a substantial sum of 2,094.7 ETH, equivalent to approximately $5,162,112 to his personal portfolio.

Following Thursday's issuance, the MANTA token skyrocketed by up to 25%, reaching a market capitalization of nearly $550 million on Friday. Previously, Manta had attracted nearly $1 billion worth of Ethereum (ETH) to its Layer 2 network, New Paradigm, powered by an airdrop program for those who transferred funds to the platform.