KAVA token sinks 40% as exploit hits Kava Lend, exchanges halt withdrawals
Kava's native token KAVA plunged more than 40% intraday on Nov. 14 after the blockchain project flagged unexpected on-chain activity involving its lending protocol Kava Lend.
The project confirmed the incident involved unusual cross-chain transfers and sales of KAVA on BNB Smart Chain. Kava emphasized that the exploit was isolated to Kava Lend, its lending and borrowing protocol, and was not the result of an infinite mint.
The token's sharp decline prompted several major exchanges to take action. Upbit suspended KAVA deposits and withdrawals, issued a caution notice, and placed the token on its delisting watchlist. Bithumb and Coinone also halted transfers as a precautionary measure.
Bridge Shutdown
In response to the incident, Kava paused its Axelar bridge as a precaution, effectively halting cross-chain asset withdrawals through the service. The team stated they would publish a complete incident report once their investigation concluded.
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