Manta Network Sparks Money Laundering Concerns in South Korea Amid Binance Listing
Manta Network, a zero-knowledge L2 blockchain, came under scrutiny in South Korea over money laundering allegations on the same day it was listed on binance, bithumb and KuCoin. These allegations suggest that money laundering activities are carried out through the Bithumb exchange. This comes after the Manta Network faced a DDoS attack on the same day.
Why is Manta Network suspected of money laundering?
According to a post, this transaction took place on the same day that MANTA was listed on Binance following the conclusion of Launchpool.
A staggering 2 million MANTA tokens were subsequently deposited into the Bithumb wallet, accounting for over 75% of the exchange’s total circulation volume at the time. Moreover, just 5 minutes after listing, MANTA’s price on Bithumb skyrocketed to a staggering $230, more than 100 times higher than its opening price of $2.26.
This was followed by a questionable move by Korean BD, which reportedly sold all 2 million MANTA tokens at a premium of 50 to 100 times the listing price. The sale proceeds of $5.16 million were later allegedly converted into 2094.7 Ethereum (ETH). The ETH tokens were then transferred to BD’s personal wallet, according to a transaction in Etherscan.
South Korea, known for its strict regulations on money laundering and financial transactions, can impose heavy penalties if these allegations are proven. BD’s actions have raised serious concerns within the crypto community. However, Manta Network’s latest statement denied these claims.
According to O Daily, the network shed light on its projects to establish a branch in South Korea. They stated that part of the community funds should be allocated to Korea BD based on the token economic model. Manta Network also announced plans to establish a branch in Hong Kong to expand its presence in Asia.
Also Read: Binance Delists BTC, ETH, and BNB Spot Trading Pairs But Here’s the Gist
Manta Faces DDoS Attack After Binance Listing
Manta Network has reportedly faced a significant distributed denial of service (DDoS) attack. The incident came to light right after the token was successfully listed on Binance and other exchanges. Kenny Li, Co-Founder of p0x labs, a cryptography development team affiliated with Manta Network, shed light on the subject.
He noted that on January 18, blockchain nodes experienced an attack of more than 135 million remote procedure call (RPC) requests. Li described the DDoS attack as both ‘aggressive’ and ‘timed’. He emphasized that despite the intensity, blockchain continues to operate securely and ensures the security of all funds. However, he acknowledged that there is a significant impact on communication between applications and the blockchain.
On the other hand, after the initial rise, the Manta cryptocurrency experienced a retreat. The Manta crypto price was recorded at $2.13 at the time of writing on Friday, January 19, indicating a decline of 6.09%. Meanwhile, its market value stood at $534.93 million. Meanwhile, the trade volume experienced a rapid increase and over 1.2 billion dollars of Manta trade took place on the first day.
Also Read: Manta Network Token Suffered DDoS Attack on Launch Day
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