2024-01-19 02:18:06 ET
The layer2 platform Manta Network encounters scrutiny following money laundering accusations in South Korea. The allegations emerged after the asset attained listing on exchanges Binance, KuCoin, and Bithumb.
Manta Network suffered a DDoS attack within 24 hours after debuting on these trading platforms, sparking money laundering assertions.
Manta Network under scrutiny
The blockchain faced money laundering accusations after a transaction where Manta Network’s Korean Business Development (BD) representative received nearly 2 million tokens in his wallet. The transfer happened on the same day MANTA achieved the Binance listing.
Afterward, the investors deposited 2 million MANTA coins into Bithumb, which accounted for more than 75% of Bithumb’s overall circulation volume. Further, MANTA price on the exchanges surged over 100x five minutes after listing, propelling the alt to $2.26.
The dramatic moves didn’t end here. Korean BD sold all 2 million tokens, accruing around $5.16M. He then converted the proceeds to 2094.7 Ether. Moreover, Etherscan data shows the trader sent the Ethereum coins to his wallet.
Manta Network counters the claims
BD’s transactions triggered alarms within the cryptocurrency world, considering South Korea’s stiff money laundering policies. Nonetheless, sources show Manta Network has denied the allegations. The project revealed an upcoming subsidiary in South Korea.
The network stated that its tokenomics model allowed it to allocate some funds to BD. Further, it confirmed plans to expand its Asian presence with another branch in Hong Kong.
MANTA price
The alt reacted to the accusation with a bearish move. MANTA lost over 5% over the past day to a press time price of $2.19.
Manta Network’s market capitalization hovered at $533.99 million, whereas the trading volume saw a swift uptick, with MANTA worth more than $1.2B traded within 24 hours.
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