The cryptocurrency world has been shaken by a colossal scandal involving Mantra ($OM) and its co-founder, John Patrick Mullin. On April 13, 2025, a detailed exposé on X alleged that Mullin orchestrated a $5 billion rugpull, resulting in a devastating 90% price crash of $OM in just one hour. This collapse, reminiscent of the infamous $LUNA crash of 2022, has left investors reeling and ignited widespread outrage. Let’s dive into the shocking details of this alleged scam, the mechanisms behind it, and its implications for the broader crypto ecosystem.
The Fall of $OM: A $5.5 Billion Disaster
On April 13, 2025, news broke that John Mullin, the driving force behind Mantra, would face jail time the following day for allegedly stealing over $5 billion through a rugpull of the $OM token. The token’s price plummeted from $6 to $0.60 in a single hour, erasing $5.5 billion in market value. The scale of this collapse drew immediate comparisons to the $LUNA crash of 2022, which similarly devastated investors overnight.
The allegations point to a meticulously planned theft, with Mullin and the Mantra team accused of manipulating the token’s ecosystem to their advantage while retail investors suffered the consequences. The claims include deceptive practices such as airdrop bait-and-switches, insider dumps, and fake governance votes, all contributing to the token’s dramatic downfall.
The Puppet Master: John Patrick Mullin’s Role
John Patrick Mullin, Mantra’s co-founder, is at the heart of this scandal. He had previously positioned himself as a visionary, promising to build a $100 billion total value locked (TVL) chain. Under his leadership, $OM briefly climbed into the top 50 cryptocurrencies by market cap, drawing in a wave of retail investors eager to capitalize on the hype.
However, the exposé claims that this success was a mirage. Once $OM reached its peak, Mullin and his team allegedly dumped their holdings on unsuspecting retail investors, triggering the catastrophic price crash. Adding insult to injury, Mullin is said to have blamed “the community” for the collapse, a move that has sparked significant backlash for its audacity.
A Web of Deception: How the Scam Unfolded
The allegations outline a series of manipulative tactics purportedly used by the Mantra team to execute the rugpull. Here’s a breakdown of the key mechanisms:
1. Airdrop Traps and Tokenomics Manipulation
Mantra initially announced a 50 million $OM airdrop to attract users, with 20% of the tokens unlocked at the start. However, the rules were repeatedly altered—first to a 0.3% daily unlock, and later to a 10% unlock in March 2025, with the rest vesting until 2027. These changes were allegedly designed to keep investors locked in while insiders prepared to offload their tokens, leaving retail participants with illiquid assets.
The team is also accused of altering $OM’s tokenomics three times, further eroding trust and centralizing control over the project’s economics.
2. The Bridge Scam
Users were reportedly forced to bridge their tokens to the MANTRA Chain, a move claimed to be a setup. Insiders allegedly pumped $OM’s price before the announcement, enticing retail investors to follow. Once the price was inflated, the insiders dumped their tokens, leaving latecomers with worthless assets.
3. Fake DAO Governance
Mantra marketed itself as a decentralized autonomous organization (DAO), but the allegations suggest this was a facade. To vote on vesting schedules, users had to stake $OM, but the team reportedly used fake wallets to control proposal outcomes. This centralized governance structure ensured the team maintained complete control, undermining the principles of decentralization.
4. Insider Dumps and OTC Deals
On-chain evidence reportedly shows a team wallet sending 3.9 million $OM to the OKX exchange just one day before the crash, triggering a wave of sell-offs and liquidations. Additionally, insiders allegedly sold millions of $OM at discounted rates through over-the-counter (OTC) deals. When the price began to dip, these OTC buyers dumped their tokens, worsening the panic and accelerating the collapse.
A Tone-Deaf Response: Mullin’s Reaction Sparks Outrage
In the wake of the crash, John Mullin issued a statement described as “tone-deaf.” He reportedly took responsibility, saying, “My decision, my responsibility,” but then shifted focus to his goal of building a $100 billion TVL chain. Critics argue this response shows a lack of accountability and disregard for the billions lost by investors, further fueling outrage.
The Bigger Picture: Contagion Risk and Lessons Learned
The Mantra scandal has the potential to reverberate across the crypto ecosystem. Mantra is closely tied to exchanges like HTX and Poloniex, and the loss of trust could lead to delistings, liquidity shocks, and spillover effects on other projects. There’s a warned “contagion risk,” urging investors to brace for further fallout.
The allegations also highlight systemic issues in the crypto space, particularly with centralized projects masquerading as decentralized. Mantra is accused of faking community votes, controlling bridges, and moving liquidity in a manner likened to organized crime, all while claiming to be a decentralized platform. This discrepancy underscores the importance of verifying project fundamentals before investing.
What Can Investors Do?
The crypto community is urged to take action to mitigate further damage. Recommendations include tagging major exchanges like Binance to request that $OM be delisted, reporting Mantra and Mullin on social platforms, and raising awareness to prevent others from falling victim to similar schemes.
Some suggest shifting focus to memecoins for quick gains, though this comes with its own risks. Investors are advised to approach such opportunities with caution and thorough research.
A Final Warning: Verify Before You Trust
The Mantra scandal is a stark reminder of the risks in the crypto space, especially with projects that promise decentralization but operate with centralized control. The collapse of $OM from a top 50 token to a $5 billion scam overnight emphasizes the need for due diligence.
As the crypto community navigates the fallout, one lesson stands out: hype is no substitute for transparency. Investors must verify leadership, scrutinize tokenomics, and avoid so-called “DAOs” that prioritize control over decentralization. The Mantra debacle is a painful lesson, but it could pave the way for a more accountable crypto ecosystem—if we heed its warnings.
