How a “crypto pawnshop” was hacked in an hour and a half
Kava Lend is something like a pawnshop in the crypto world: you put up collateral and borrow money.
On Friday evening, a hacker found a loophole in a forgotten section involving a stablecoin and inflated the value of their collateral. It’s like bringing a trinket to a pawnshop, convincing the cashier it’s a Van Gogh painting, and taking everything in the till.
The result: in an hour and a half, just 0.19 tokens remained in the vault instead of 55 million. The damage came to around $3.8 million. The hacker has already moved some of the loot to another network and sold it.
The price of the KAVA token plunged nearly 40%, and Korean exchanges Upbit, Bithumb, and Coinone suspended transfers. The Kava team says there was no unlimited token minting and that the issue was isolated.
The moral: even a forgotten corner of a protocol can cost millions.
The story is still unfolding, and the figures may change.
$KAVA
#KAVA
Kava Lend is something like a pawnshop in the crypto world: you put up collateral and borrow money.
On Friday evening, a hacker found a loophole in a forgotten section involving a stablecoin and inflated the value of their collateral. It’s like bringing a trinket to a pawnshop, convincing the cashier it’s a Van Gogh painting, and taking everything in the till.
The result: in an hour and a half, just 0.19 tokens remained in the vault instead of 55 million. The damage came to around $3.8 million. The hacker has already moved some of the loot to another network and sold it.
The price of the KAVA token plunged nearly 40%, and Korean exchanges Upbit, Bithumb, and Coinone suspended transfers. The Kava team says there was no unlimited token minting and that the issue was isolated.
The moral: even a forgotten corner of a protocol can cost millions.
The story is still unfolding, and the figures may change.
$KAVA
#KAVA
