diff --git a/.changeset/fancy-ends-dance.md b/.changeset/fancy-ends-dance.md
new file mode 100644
index 000000000..4435362f1
--- /dev/null
+++ b/.changeset/fancy-ends-dance.md
@@ -0,0 +1,5 @@
+---
+"@exactly/server": patch
+---
+
+🐛 handle failed onboarding tasks in manteca
diff --git a/server/test/utils/manteca.test.ts b/server/test/utils/manteca.test.ts
index 256ae36de..bf3551aaa 100644
--- a/server/test/utils/manteca.test.ts
+++ b/server/test/utils/manteca.test.ts
@@ -350,6 +350,22 @@ describe("manteca utils", () => {
       expect(result.status).toBe("NOT_AVAILABLE");
     });
 
+    it("returns ONBOARDING when user has failed required tasks", async () => {
+      vi.spyOn(globalThis, "fetch").mockResolvedValueOnce(
+        mockFetchResponse({
+          ...mockOnboardingUser,
+          onboarding: {
+            EMAIL_VALIDATION: { required: true, status: "COMPLETED" },
+            IDENTITY_VALIDATION: { required: true, status: "FAILED" },
+          },
+        }),
+      );
+
+      const result = await manteca.getProvider(account, "AR");
+
+      expect(result.status).toBe("ONBOARDING");
+    });
+
     it("returns NOT_STARTED when user has pending required tasks", async () => {
       vi.spyOn(globalThis, "fetch").mockResolvedValueOnce(
         mockFetchResponse({
diff --git a/server/utils/ramps/manteca.ts b/server/utils/ramps/manteca.ts
index 1b0c86fcf..ba462b882 100644
--- a/server/utils/ramps/manteca.ts
+++ b/server/utils/ramps/manteca.ts
@@ -267,10 +267,23 @@ export async function getProvider(
   if (mantecaUser.status === "INACTIVE") {
     return { onramp: { currencies: [], cryptoCurrencies: [] }, status: "NOT_AVAILABLE" };
   }
-  const hasPendingTasks = Object.values(mantecaUser.onboarding).some(
-    (task) => task.required && task.status === "PENDING",
-  );
-  if (hasPendingTasks) {
+
+  if (Object.values(mantecaUser.onboarding).some((task) => task.required && task.status === "FAILED")) {
+    // TODO handle failed required tasks
+    withScope((scope) => {
+      scope.addEventProcessor((event) => {
+        if (event.exception?.values?.[0]) event.exception.values[0].type = "has failed tasks";
+        return event;
+      });
+      captureException(new Error("has failed tasks"), {
+        level: "warning",
+        fingerprint: ["{{ default }}", "has failed tasks"],
+      });
+    });
+    return { onramp: { currencies, cryptoCurrencies: [] }, status: "ONBOARDING" };
+  }
+
+  if (Object.values(mantecaUser.onboarding).some((task) => task.required && task.status === "PENDING")) {
     withScope((scope) => {
       scope.addEventProcessor((event) => {
         if (event.exception?.values?.[0]) event.exception.values[0].type = "has pending tasks";
@@ -279,7 +292,6 @@ export async function getProvider(
       captureException(new Error("has pending tasks"), {
         level: "warning",
         fingerprint: ["{{ default }}", "has pending tasks"],
-        contexts: { mantecaUser },
       });
     });
     return { onramp: { currencies, cryptoCurrencies: [] }, status: "NOT_STARTED" };
@@ -545,7 +557,7 @@ export const BalancesResponse = object({
   updatedAt: string(),
 });
 
-const onboardingTaskStatus = ["PENDING", "COMPLETED", "IN_PROGRESS"] as const;
+const onboardingTaskStatus = ["COMPLETED", "FAILED", "IN_PROGRESS", "PENDING"] as const;
 const OnboardingTaskInfo = optional(
   object({
     required: boolean(),