Initia, a distributed network designed for interconnected blockchains, paused its main Layer 1 network and associated rollups on Friday following a security breach.
Co-founder Ezaan Mangalji, known as Zon, stated that early investigations suggested a previously undetected "Day 0" flaw within the platform’s MoveVM framework on the Cosmos SDK, which enabled illicit token creation while emphasizing that this issue "does not apply to native INIT tokens."
"The malicious actor managed to generate and bridge out approximately $2.7 million in AUSD, ETH, and USDC prior to the network being frozen," he noted.
On-chain researcher Spreek initially calculated that the perpetrator had liquidated about $2.6 million, with additional assets currently moving across networks.
Initia noted that it is actively examining the scope of the event in collaboration with security specialists, node validators, and trading platforms, though an official total for the stolen funds remains unconfirmed.
The value of Initia’s native INIT token dropped by 14% right after the attack came to light, prior to erasing those declines, and currently trades up 14% for the session.
This is a developing story. More information will be added as it becomes available.
Originally published at https://www.theblock.co/news/defi/2026-10-23-initia-halts-network-after-security-incident-attacker-reportedly-mints-tokens-427755.
