Manta Network accused of team dumping 2 million MANTA tokens and money laundering by Korean community
Manta Network, a modular L2 solution for ZK applications, has been launched on Binance Launchpool as its 44th project on January 16, 2024. However, the project has faced allegations of team dumping and money laundering by the Korean crypto community, who claimed that Manta Korea BD Sumeley sold 2 million MANTA tokens within 5 minutes of its listing on Bithumb, a major Korean exchange, and transferred the proceeds to his personal wallet.
According to the accusers, Sumeley transferred 2 million MANTA tokens from the Manta distribution wallet to his personal wallet on January 18, 2024, the same day that MANTA was listed on Bithumb. He then deposited the tokens into Bithumb’s deposit wallet, accounting for more than 75% of Bithumb’s total circulation volume of MANTA.
. @MantaNetwork was suspected of money laundering through Bithumb on the day of listing
– 2M $MANTA transferred to personal wallet of MANTA’s Korean BD
– 2M $MANTA was deposited into Bithumb deposit wallet, accounting for more than 75% of Bithumb’s total circulation volume.
— Definalist (@definalist) January 18, 2024
Within 5 minutes of listing, Bithumb’s MANTA price soared to $230, while the price on other exchanges was around $2. Sumeley allegedly dumped all 2 million MANTA tokens at 50 to 100 times the market price, making a profit of over $5 million. He then swapped the money to Ethereum and transferred 2,094.7 ETH to his personal wallet.
The Korean community questioned the legitimacy of Sumeley’s actions and suspected that he was involved in money laundering or insider trading. They also criticized Bithumb for allowing such a large deposit and price manipulation without any intervention or explanation.
South Korea has strict regulations on cryptocurrency transactions and requires real-name verification and anti-money laundering compliance for crypto service providers. The Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU) are the main regulators of the crypto sector in South Korea and have the authority to impose sanctions or penalties for any violations.
If the allegations against Sumeley and Manta are proven to be true, they could face legal consequences and damage the reputation of the project and the exchange. Neither Sumeley nor Manta have responded to the accusations as of the time of writing.
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