WORLDTECHCybersecurity SINGLE SOURCE
Kava Lend Exploit Lets Attackers Borrow 55.2 Million KAVA
Attackers exploited the Kava Lend protocol by using inflated BUSD collateral to borrow 55.2 million KAVA, according to a report from The Defiant. Bridge withdrawals and transfers at three Korean exchanges have been suspended in the wake of the incident.
How the collateral was inflated
According to the single report available, the attack depended on BUSD collateral whose value had been artificially raised. With that collateral in place, the attackers were able to take out loans of 55.2 million KAVA from the lending platform.
Exchanges halt bridge activity
Three Korean exchanges have suspended bridge withdrawals and transfers. The measure is a direct response to the exploit and affects users trying to move assets across the bridge while the situation is assessed.
Open questions
- How much value was ultimately taken from the protocol?
- When will bridge withdrawals and transfers resume at the three exchanges?