An attacker manipulated Kava Lend’s BUSD market to artificially inflate the value of a deposit by approximately 243,000 times before borrowing 55.2 million KAVA. After repaying other users’ loans, two wallets obtained 53.9 million KAVA, worth about $3.7 million before the sale. Roughly 49.2 million KAVA were then transferred to BNB Chain through LayerZero and sold for about $2.1 million. KAVA fell 46.6% in 24 hours to $0.036, prompting Upbit, Bithumb, and Coinone to suspend deposits and withdrawals, while the Axelar bridge was halted as a precaution. Kava says the incident remains confined to Kava Lend and that no new tokens were minted, but the market’s reserve now contains only 0.19 KAVA against 55.2 million KAVA owed to depositors.
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