The KAVA token crashed by roughly 40% after Kava announced an investigation into unusual on-chain activity linked to Kava Lend, its decentralized platform for lending and borrowing crypto assets. Kava said the incident was isolated to the application and did not involve an infinite mint of KAVA tokens. Tokens transferred to the BNB Smart Chain and then liquidated triggered a steep sell-off, prompting several major exchanges to suspend deposits and withdrawals. The Axelar bridge used by the Kava ecosystem was also paused as a precaution. Upbit, Bithumb, and Coinone froze KAVA transactions, while the Kava team is expected to publish a complete incident report once the investigation concludes.
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