Initia pauses blockchain after attacker mints $2.7M in tokens

Initia halts network after security breach

Initia, a blockchain network designed to connect different crypto chains, stopped its main network and rollups on Friday due to a security incident. The pause was triggered by an attack that allowed a user to create unauthorized digital tokens.

Initia’s co-founder Ezaan Mangalji, who goes by Zon, stated that preliminary findings point to a previously unknown 'Day 0' bug in the network's MoveVM implementation on Cosmos SDK. This vulnerability enabled unauthorized token minting but did not affect the native INIT tokens.

The attacker successfully minted and bridged out approximately $2.7 million worth of AUSD, ETH, and USDC before the chain was paused.

Key figures and timeline

• The incident occurred on Friday, October 23, 2026.
• The estimated loss reported by co-founder Ezaan Mangalji is around $2.7 million.
• Blockchain researcher Spreek estimated the attacker had cashed out roughly $2.6 million, with additional funds in transit.
• The INIT token fell 14% immediately after the report but reversed losses to trade 14% higher by the end of the day.

What Initia confirmed

Initia confirmed that it is investigating the full scope of the incident alongside security teams, validators, and exchanges. The company has not yet confirmed the total amount lost, relying on preliminary findings for the $2.7 million estimate. The native INIT token was explicitly stated to be unaffected by the specific bug exploited.

Why this matters for users

This event highlights the risks of 'Day 0' vulnerabilities, which are bugs present from the moment a new software version or network goes live. Because Initia's network supports interconnected chains, a security flaw in its core implementation affects the assets held on those networks. The quick reversal of the INIT token's price suggests that the market is currently viewing the incident as limited to specific bridged assets rather than a systemic failure of the entire ecosystem.

Sources

• The Block

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