The idle liquidity pools in lending protocols that no one monitors often become the most dangerous security backdoors.
According to BlockTempo, hackers exploited a vulnerability in Kava Lend’s disabled BUSD pool, inflating the value of their collateral by 243,000 times in just three minutes. The attackers used this to borrow 55.2 million KAVA, then bridged it to BNB Chain and sold it for approximately $2.09 million.
According to Binance spot market data, KAVA plunged more than 60% today and is now trading at around $0.03. The official team clarified that no new tokens were minted and that the risk has been isolated. What happens next depends on whether the protocol uses its treasury to cover the bad debt, and when Korean exchanges resume deposits and withdrawals.
Not investment advice. Please assess the risks for yourself.
$KAVA $BNB
According to BlockTempo, hackers exploited a vulnerability in Kava Lend’s disabled BUSD pool, inflating the value of their collateral by 243,000 times in just three minutes. The attackers used this to borrow 55.2 million KAVA, then bridged it to BNB Chain and sold it for approximately $2.09 million.
According to Binance spot market data, KAVA plunged more than 60% today and is now trading at around $0.03. The official team clarified that no new tokens were minted and that the risk has been isolated. What happens next depends on whether the protocol uses its treasury to cover the bad debt, and when Korean exchanges resume deposits and withdrawals.
Not investment advice. Please assess the risks for yourself.
$KAVA $BNB