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Crypto DeFi

MANTRA Halts Unstaking for 7 Days After Keplr Private Key Exploit

MANTRA has suspended all unstaking transactions for seven days after hackers, exploiting a Web3Auth and Keplr wallet private key leak, drained users’ liquid assets and then unstaked their pledged MANTRA tokens without consent. Unstaking already in progress is unaffected, but users must redelegate before the eight-day unbonding period ends to prevent the hackers from claiming the assets. MANTRA had previously frozen several hacker wallets via governance proposal 41.

Original source

AI take

The exploit's focus on liquid assets and involuntary unstaking shows how wallet-layer key leakage can bypass on-chain safeguards, forcing a protocol-level pause that trades user control for containment. The real exposure sits with MANTRA stakers using Web3Auth and Keplr, whose redelegation timing now determines whether hackers capture pledged tokens. The open question is whether the seven-day halt and prior governance freezes prove sufficient, or whether the eight-day unbonding window leaves a residual gap that governance action cannot close.

Generated by AI for reference only.

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