Klever responded immediately upon receiving reports of suspicious activity from the KleverPulse monitoring team. Through rapid coordination between developers, validators, and community contributors, a mitigation was developed and deployed to mainnet while the root cause investigation continues. See the preliminary incident report below. Preliminary Security Incident Report Klever Blockchain — NFT Marketplace Exploit Date: June 5, 2026 Status: Under Active Investigation Summary Klever was alerted by the KleverPulse monitoring team (kpulse.tech) to suspicious on-chain activity consistent with wash trading. Upon internal investigation, a critical exploitation flaw was identified in the NFT Marketplace kApp. Attack Vector The attacker self-issued and self-inflated an NFT collection, exploiting a flaw in the NFT Marketplace kApp to artificially generate KLV. The fabricated KLV was subsequently liquidated via the DEX into wrapped assets (USDC, USDT, WBTC, WETH) and exited through the ETH–KLV bridge. Immediate Response A partial fix was developed and deployed to mainnet while root cause analysis remains ongoing. The fix was made possible in part through community collaboration and rapid coordination. Current Status • Exploit vector: partially mitigated • Root cause analysis: in progress • Mainnet: updated with partial fix • Bridge and DEX activity: under monitoring Next Steps A full post-mortem will be published once the root cause is confirmed. Further patches may follow. All stakeholders will be kept informed as the investigation progresses. This is a preliminary report. Information is subject to revision as new findings emerge.

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