Binance Listing of Manta Crypto Raises Money Laundering Worries in South Korea

On the day of its listing on major cryptocurrency exchanges such as Binance, Bithumb, and KuCoin, the Manta Network, a zero-knowledge Layer 2 blockchain, has found itself under intense scrutiny in South Korea. Allegations of money laundering have emerged, with claims pointing towards illicit activities conducted through the Bithumb exchange.

Binance Listing of Manta Crypto Raises Money Laundering Worries in South Korea

The timing of these allegations coincides with the Manta Crypto experiencing a Distributed Denial of Service (DDoS) attack on the same day, further heightening concerns and raising questions about the platform’s security and regulatory compliance.

Money Laundering Suspicions Surround Manta Network Amid Binance Listing

In a recent exposé on X by Definalist, a prominent figure within the South Korean decentralized finance (DeFi) community, startling revelations have surfaced concerning Manta Network’s alleged involvement in money laundering activities. The exposé alleges that around 2 million MANTA tokens were suspiciously transferred to the personal wallet of MANTA’s Korean Business Development (BD) representative. Significantly, this transaction unfolded on the very day MANTA secured a listing on Binance following the conclusion of its Launchpool.

The subsequent events painted a worrisome picture. The 2 million MANTA tokens were swiftly deposited into a Bithumb wallet, constituting an overwhelming 75% of the exchange’s total circulation volume at that particular moment. What adds an additional layer of intrigue to this narrative is the lightning-fast surge in the price of MANTA on Bithumb. Within a mere 5 minutes of listing, the token’s price catapulted to an extraordinary $230, marking an astounding surge of over 100 times its initial opening price of $2.26.

However, the most eyebrow-raising aspect of this saga revolves around the actions of the Korean BD representative. Allegedly, all 2 million MANTA tokens were promptly dumped at a premium ranging from 50 to 100 times the listing price. The staggering sale proceeds, totaling $5.16 million, were purportedly converted into 2094.7 Ethereum (ETH). Subsequently, these ETH tokens found their way into the BD’s personal wallet, as discerned from a transaction recorded on Etherscan.

These revelations have sent shockwaves throughout the cryptocurrency community, especially considering South Korea’s reputation for imposing strict regulations on money laundering and financial transactions. If these allegations prove to be accurate, the regulatory authorities in South Korea may enforce severe penalties.

The actions of the BD representative have sparked significant apprehension and skepticism among crypto enthusiasts, as they await further developments in this unfolding controversy. However, it is crucial to acknowledge that Manta Network has issued a statement vehemently refuting these claims. This adds a layer of complexity to the situation, necessitating a comprehensive investigation to ascertain the veracity of the allegations against Manta Network and its Korean BD representative. As the controversy continues to evolve, the cryptocurrency community remains on edge, seeking clarity and transparency in this intricate and potentially damaging situation.

DDoS Assault Targets Manta Network Following Binance Integration

Manta Network recently found itself at the center of a significant distributed denial-of-service (DDoS) attack, a troubling incident that unfolded shortly after the successful listing of its token on prominent exchanges, including Binance. Kenny Li, Co-Founder of p0x labs, the cryptographic development team associated with Manta Network, provided insights into the situation.

Li revealed that the blockchain’s nodes encountered a barrage of over 135 million remote procedure call (RPC) requests on January 18. Describing the DDoS attack as both ‘aggressive’ and ‘timed,’ he underscored that, despite the intensity, the blockchain maintained its security, safeguarding all funds. However, he acknowledged a significant impact on communication between applications and the blockchain.

In the aftermath of the initial spike, the Manta crypto experienced a pullback, with its price dipping to $2.13 at the time of reporting on Friday, January 19, marking a 6.09% decline. The market capitalization of Manta stood at $534.93 million, while the trading volume witnessed a rapid surge, exceeding $1.2 billion worth of Manta traded on the first day. These developments highlight the resilience of the Manta blockchain in the face of adversity, although the incident did leave its mark on the cryptocurrency’s market performance.