Kava is investigating unusual on-chain activity involving KAVA tokens that were bridged to BNB Smart Chain and then sold, according to the project. Several exchanges paused KAVA transfers while the team continued its review.
The token fell more than 40% within the first hour after the announcement on November 14, 2026, before extending losses over the next 24 hours.
What Kava has said
Kava described the issue as abnormal activity isolated to its Kava Lend protocol, indicating that the review is focused on one lending product rather than the entire network.
The project also said the incident did not involve an unlimited mint of tokens. That clarification narrows the remaining question to how tokens connected to Kava Lend were moved to BNB Smart Chain and sold.
Research findings estimate that roughly 48.36 million KAVA, valued at about $3.3 million, was bridged to BSC. Official confirmation of that figure is still pending, so it should be treated as an estimate rather than a final tally.
Exchange suspensions
South Korean exchanges Upbit and Coinone halted KAVA deposits and withdrawals on November 14 after a security warning. Both platforms described the move as a precaution.
The suspensions mean users on those exchanges cannot move KAVA in or out until transfers resume, limiting their options while the price swings.
Price impact
The initial drop of more than 40% in the first hour was followed by a decline of approximately 44.5% to 46.5% over 24 hours, depending on the data source. The token then settled at approximately $0.036 to $0.038.
What holders are watching
The immediate question for holders is scope. Kava says the issue is limited to Kava Lend and does not involve an unlimited mint. If that holds up, the damage may be contained to the tokens already moved and sold.
Two developments remain in focus: official confirmation of the roughly 48.36 million KAVA figure and the resumption of deposits and withdrawals on Upbit and Coinone. Reopened transfers would suggest the exchanges are satisfied the situation is under control.
Research findings also note that some traders may view Kava’s quick disclosure as a sign of proactive management and transparency.
For now, KAVA trades at approximately $0.036 to $0.038, two Korean exchanges have frozen transfers, and the investigation continues.
