Kava Probes Abnormal Activity as Upbit and Coinone Halt KAVA Transfers

Kava is investigating unusual activity involving KAVA tokens bridged to BNB Smart Chain and sold there, while South Korean exchanges Upbit and Coinone suspend deposits and withdrawals after a security warning.

Kava described the incident as abnormal activity isolated to Kava Lend, its lending protocol. The project said it did not involve an unlimited mint of tokens, framing the issue as tied to that product. Kava’s description points to the lending protocol rather than the Kava network as a whole.

KAVA fell more than 40% within the first hour after the Nov. 14 announcement. Upbit and Coinone suspended deposits and withdrawals that day, leaving users unable to move KAVA into or out of accounts on either platform while the pauses remain active.

The incident centers on tokens connected to Kava Lend that moved to BNB Smart Chain and were sold. Kava is still investigating how that activity occurred, while the exchanges have paused transfers during the review.