KAVA token sinks 40% as exploit hits Kava Lend, exchanges halt withdrawals

What happened

https://twitter.com/KAVA_CHAIN/status/2121574325765476462?a=MsWRc1sLBrhesPJzZ7M&s=20 Upbit suspended KAVA deposits and withdrawals, issued a caution notice and placed the token on its delisting watchlist. The exploit (a piece of code that turns a flaw into a way in) highlights vulnerabilities in DeFi systems, potentially undermining trust and prompting stricter security measures across platforms.

The project said the incident involved unusual cross-chain transfers and sales of KAVA on BNB Smart Chain.

14 as the blockchain project flagged an unexpected on-chain (recorded on the blockchain itself rather than beside it) activity involving an application in its decentralized finance ecosystem.

Add your holdings to find related stories in Pro. Create a free account The incident led Upbit, Bithumb and Coinone to suspend KAVA deposits and withdrawals while assessing the situation, according to a notice.

Kava said the incident was isolated to Kava Lend, its lending and borrowing protocol, and that it was not the result of an infinite mint. The project also addressed reports of KAVA tokens being bridged to and sold on BNB Smart Chain, which contributed to the token’s sharp decline.