Initia halts blockchain after exploit reportedly drains over $2.6 million

Network halted as unauthorized token minting reported

Initia, a layer-1 blockchain (a base network that supports other decentralized applications), has paused its main network and related sub-networks known as rollups. The halt followed a security incident that allowed an attacker to mint new tokens without permission and extract millions of dollars in crypto assets.

According to a post on the social media platform X, the network was shut down at 3:41 p.m. UTC on Friday. The team stated it was working with security researchers, validators, and exchanges to determine the full scope of the damage.

Key numbers from the incident

• The exploit reportedly drained over $2.6 million in crypto assets.
• An attacker minted approximately 2 million AUSD tokens without sufficient backing.
• The attacker withdrew around 1.4 million AUSD, 105 ETH, and 1.08 million USDC to the Ethereum network.
• The stolen assets were consolidated into a single Ethereum wallet holding about 1,135.5 ETH, valued at $2.73 million.
• Initia's native token (INIT) briefly dropped to $0.115 on Friday before rebounding.

Security researchers provide the details

Blockchain security researcher Spreek was the first to identify the exploit, reporting that the attacker converted around $2.6 million into other assets while more funds were still being moved.

The DeFi platform D2 Finance later analyzed the transaction trail. The firm stated that the attacker took advantage of a vulnerability in a specific coding function called Move to create unbacked tokens and exchange them for assets on the Ethereum network.

What is confirmed

It is confirmed that Initia has temporarily paused its main blockchain and its associated rollups. The official team confirmed the halt and stated they are actively working with security researchers and exchanges. The network also confirmed the specific time of the shutdown on Friday at 3:41 p.m. UTC.

The INIT token experienced a temporary price drop to roughly $0.115 on Friday, which was later followed by a rebound back to around $0.15.

What remains unclear

The Initia team has not publicly confirmed the estimated loss figures or identified the exact cause of the exploit. There is currently no clear timeline for when the network will be restored to normal operation.

What happens next

The team continues to investigate the incident by working with security researchers, validators, and exchanges to determine the full impact on users. No further details have been announced regarding a specific date for when network operations will resume.

Sources

• Cointelegraph