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The team behind Manta Network, a zero-knowledge Layer 2 (L2) blockchain, has stepped forward to address allegations of money laundering. The controversy unfolded on the day of Manta Network's listing on major exchanges, including Binance, Bithumb, and KuCoin.
Manta's network was attacked simultaneously with allegations of money laundering via the Bithumb exchange.
What Happened:
The storm began with a post in Manta's Korean Telegram group, accusing a suspicious transaction involving MANTA tokens on the listing day.
The post claimed that a substantial amount—2 million $MANTA—was transferred to the personal wallet of MANTA's Korean Business Development (BD) representative. The tokens represented over 75% of Bithumb's total circulation volume after being deposited into the exchange's wallet.
Within just five minutes of listing, the price of MANTA on Bithumb skyrocketed to $230. The BD representative supposedly sold the entire 2 million MANTA tokens at 50~100 times the listing price, amassing about 2094.7 Ethereum (ETH).
The amount of Ethereum valued at $5,162,112, was then transferred to the BD representative's personal wallet.
In the event that the allegations are true, severe penalties could be imposed under South Korean law.
Manta Network's Counterstatement
Manta Network issued a recent statement that overshadowed the accusations. The network clarified that the it is expanding in South Korea, requiring the allocation of community funds to the Korean BD representative based on their token economic model.
As part of our commitment to supporting and growing the local community presence in 🇰🇷 Korea, we are excited to announce our first investment to support @LayerBankFi, the largest DeFi project on @MantaNetwork by TVL. https://t.co/fnzgQWWpQe
— Manta Network (🔱,🔱) #MantaNewParadigm (@MantaNetwork) January 19, 2024
According to Manta, it aims to develop closer ties with local projects, cater to the Korean market's specific needs, and integrate Manta Network's offerings with local web3 offerings.
Furthermore, Manta Network revealed plans to set up a branch in Hong Kong to collaborate with local developers, entrepreneurs, and enthusiasts.
DDoS Attack Adds to the Chaos
On the day of the highly anticipated Token Generation Event (TGE), Manta Network encountered a disruptive DDoS attack. Kenny Li, co-founder of P0xeidon Labs, the cryptographic development team behind Manta Network, reported that the blockchain's nodes endured over 135 million remote procedure call (RPC) requests on January 18.