Unusual cross-chain transfers and sales of KAVA on BNB Smart Chain hit the Kava ecosystem on November 14, and the team traced the incident to Kava Lend, its lending and borrowing protocol. Kava said it was not the result of an infinite mint.

As a precaution, Kava paused its Axelar bridge, halting cross-chain asset withdrawals through the service. Upbit, Bithumb and Coinone suspended KAVA deposits and withdrawals, and Upbit also placed the token on its delisting watchlist.

KAVA fell from about $0.068 to $0.041 in 24 hours, a 41% drop.

Kava is a DeFi-focused Layer-1 built on the Cosmos SDK with an Ethereum co-chain. The team said it will publish a full incident report once the investigation is complete.