Kava Lend Lending Protocol Attacked, Approximately 55.2 Million KAVA Tokens Borrowed

According to TechFlow, on November 15, The Block reported that on-chain data shows the attacker borrowed approximately 55.2 million KAVA tokens from Kava Lend, the lending protocol on the Kava chain, which was valued at around $3.76 million prior to the attack.

The report notes that the attacker exploited mechanisms in the idle BUSD market to inflate deposit value by approximately 243,000 times, repeatedly borrowing KAVA using artificially inflated collateral. Approximately 49.2 million KAVA tokens were subsequently bridged to BNB Chain via LayerZero, most of which were sold for around $2.09 million in BNB and USDT.

Kava previously stated that the incident did not involve unlimited token issuance and its impact is confined to Kava Lend. Partner exchanges have suspended KAVA deposits and withdrawals, and the team has also paused the Axelar cross-chain bridge.