OKX says it identified and acted on OM price manipulation

The cryptocurrency exchange OKX announced it has uncovered a scheme in which several accounts used large amounts of Mantra (OM) as collateral to borrow USDT, artificially inflating the token's price. The exchange stated that after detecting the abnormal trading activity, it requested the account holders take corrective action but they were uncooperative. To prevent further risk, OKX restricted the accounts, which was followed by a sharp drop in the price of OM. The exchange confirmed that its security fund fully covered all losses resulting from the price crash. OKX added that an external analysis indicated the price decline was primarily caused by perpetual contract trading that occurred outside of its platform. The company emphasized that its security fund operated as intended by absorbing the losses. The origin of the accounts' unusually large OM holdings remains under investigation. OKX has submitted its findings to regulatory and law enforcement authorities and is currently involved in several related lawsuits.