Initia halts blockchain after exploit reportedly drains over $2.6M
The blockchain suspended its layer-1 network and rollups after security researchers identified unauthorized token minting and millions in assets transferred to Ethereum.
Initia, a layer-1 blockchain, halted its network and rollups on Friday after security researchers uncovered an exploit that resulted in unauthorized token minting and the transfer of millions worth of crypto assets to Ethereum. The attack, identified by blockchain sleuth Spreek, allowed an attacker to mint tokens without permission and convert approximately $2.6 million into other assets, with further funds still being moved.
D2 Finance later reported that the attacker exploited a vulnerability in a Move function to generate 2 million AUSD tokens without sufficient backing. The attacker then transferred roughly 1.4 million AUSD, 105 Ether (ETH) and 1.08 million USDC to Ethereum. The stolen assets were later consolidated into an Ethereum wallet containing around 1,135.5 ETH, valued at $2.73 million.
Initia's native token, INIT, briefly dropped to $0.115 before recovering above $0.15. The company has not yet confirmed the exact losses or the specifics of the exploit, leaving the full impact on users and the timeline for network recovery uncertain.
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