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

The project said the incident involved unusual cross-chain transfers and sales of KAVA on BNB Smart Chain. Kava’s native token KAVA crashed more than 40% intraday on Nov. 14 as the blockchain project flagged an unexpected on-chain activity involving an application in its decentralized finance ecosystem. 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.

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