Kava Says the Abnormal Activity Stayed Inside Kava Lend — But the Damage Is Done
Kava Lend was drained late Friday: an attacker used a flaw in the lending app's interest math to borrow 55.2 million KAVA in 127 loans, worth about $3.76 million at the pre-attack price, and emptied the pool from 55.33 million KAVA to just 0.19. Around 48.4 million of the coins were sold on BNB Chain in 35 minutes for about $2.1 million, and KAVA fell as much as 47% in 24 hours, from a $0.0687 high to a $0.0364 low.
Kava says this was not an infinite mint, no new coins were created, and the event was isolated and contained within Kava Lend. Upbit suspended KAVA deposits and withdrawals, Bithumb and Coinone also halted transfers, and the Axelar bridge was paused. No official loss figure or root cause has been published yet, and a full incident report is still promised.
KAVA now trades at 0.03829 on Binance spot at 14:48 PKT, down 43.81% in 24 hours, well off its 0.02507 low but still far below where the attack began. The episode matters because it shows how fast a thin lending market can be drained, and how quickly exchanges move to halt a token when they smell a security incident.
Do you think KAVA recovers from here, or does the exploit hang over it until the full report lands?
Not financial advice. DYOR.
#KavaSaysAbnormalActivityLimitedToKavaLend
Kava Lend was drained late Friday: an attacker used a flaw in the lending app's interest math to borrow 55.2 million KAVA in 127 loans, worth about $3.76 million at the pre-attack price, and emptied the pool from 55.33 million KAVA to just 0.19. Around 48.4 million of the coins were sold on BNB Chain in 35 minutes for about $2.1 million, and KAVA fell as much as 47% in 24 hours, from a $0.0687 high to a $0.0364 low.
Kava says this was not an infinite mint, no new coins were created, and the event was isolated and contained within Kava Lend. Upbit suspended KAVA deposits and withdrawals, Bithumb and Coinone also halted transfers, and the Axelar bridge was paused. No official loss figure or root cause has been published yet, and a full incident report is still promised.
KAVA now trades at 0.03829 on Binance spot at 14:48 PKT, down 43.81% in 24 hours, well off its 0.02507 low but still far below where the attack began. The episode matters because it shows how fast a thin lending market can be drained, and how quickly exchanges move to halt a token when they smell a security incident.
Do you think KAVA recovers from here, or does the exploit hang over it until the full report lands?
Not financial advice. DYOR.
#KavaSaysAbnormalActivityLimitedToKavaLend