Key Insights
- Mantra has paused new unbonding transactions for seven days following the Web3Auth and Keplr wallet exploit
- Hackers are attempting to unstake the tokens after stealing liquid tokens from affected wallets.
- Mantra has frozen several hacker wallets and advised affected users to redelegate tokens before unbonding ends.
Mantra has paused new unbonding transactions for seven days after users reported further theft attempts linked to the Web3Auth and Keplr wallet exploit. Hackers had already taken liquid tokens from some wallets and were now trying to unstake tokens left behind. The network says the pause is meant to limit further losses.
Mantra Responds to Reports From Affected Users
Mantra said it received several complaints from people who found that their staked tokens were being unbonded without permission. The reports followed an ongoing exploit involving Web3Auth and Keplr wallets and private keys.
In its community notice, the blockchain said the attackers had already stolen liquid MANTRA tokens from affected wallets. They then moved on to tokens that were still staked, starting the process needed to withdraw them.
The team has now stopped all new unbonding transactions for seven days. It said the decision was made to keep more tokens from reaching the attackers while recovery work continues.
The pause is temporary, but the end date is not guaranteed. Mantra plans to review the restriction after seven days and may introduce another pause if it believes users remain at risk.
The team acknowledged that stopping unbonding affects people who have not reported a problem with their wallets. Still, it said the complaints called for action before more funds could be taken. Web3Auth and Keplr are involved in efforts to deal with the exploit. Mantra said it is supporting their recovery work and will share further information with its community.
For holders, the important difference is between starting a new withdrawal and finishing one that was already underway. The emergency measure stops the first, but it does not automatically stop the second.
Mantra News: Existing Unbonding Requests Will Continue
Mantra warned that transactions already in the unbonding process are not covered by the seven-day pause. Those requests will keep running even though new ones have been blocked.
Under the network’s stated rules, unbonding takes eight days. Once that period ends, the tokens can be claimed. That creates a problem for anyone whose wallet or private key has been compromised.
If hackers started an unbonding request, they could claim the tokens when the waiting period ends. They could then send the funds to an address the owner does not control.
The network therefore told affected users to redelegate their tokens before the eight days are over. Redelegating would stop the current unbonding process from finishing.
After that, a new attempt to unbond those tokens would fall under the emergency pause. This is why the team said people with requests already in progress must act before the deadline.
The notice did not say that all staked tokens had been stolen. Its warning concerned wallets affected by the exploit and the risk of further withdrawals.
Hacker Wallets Frozen Under Governance Proposal 41
The unbonding pause follows another step taken against the attackers. Mantra said several hacker wallets had already been frozen under Governance Proposal 41.
That action was taken while the network worked with Web3Auth and Keplr on recovery efforts. The latest restriction is intended to prevent further theft during that work.
The announcement did not give a total for stolen tokens or say how many users had complained. It also gave no date for completing recovery efforts.
The team has not said whether the pause will end after the review or what would allow new withdrawals to resume. For now, the seven-day review will determine whether new unbonding requests can resume. Mantra said it would keep users informed as the situation develops.
