Latest NewsPublishedOct 23, 2026
The blockchain paused its layer-1 network and rollups after security analysts discovered illegal token creation and millions worth of assets moved to Ethereum.
Initia suspended its layer-1 blockchain and associated rollups following reports from on-chain investigators regarding a security breach that enabled a malicious actor to mint tokens illicitly and extract more than $2.6 million in digital assets.
The network was shut down on Friday at 3:41 p.m. UTC subsequent to a security event, as stated by Initia in a publication on X. The developers mentioned they were cooperating with blockchain analysts, validators, and trading platforms to assess the full scope of the damage.
On-chain security investigator Spreek initially highlighted the breach on Friday, stating that a perpetrator had generated tokens without permission and swapped roughly $2.6 million for alternative assets, while additional funds continued to be transferred.
Decentralized finance protocol D2 Finance subsequently shared that the exploiter took advantage of a flaw to mint 2 million unbacked AUSD tokens. The attacker then leveraged bridge transfers to withdraw around 1.4 million AUSD, 105 Ether (ETH), and 1.08 million USDC to Ethereum.
The pilfered funds were later gathered into an Ethereum address containing roughly 1,135.5 ETH, valued at $2.73 million, according to D2 Finance. The organization pointed to a flaw inside a Move function as the root cause, which allowed the bad actor to generate unsupported tokens and trade them for assets on Ethereum.
Source: Initia
Initia serves as a layer-1 blockchain built to host a collection of interconnected rollups known as Minitias. Its native cryptocurrency, INIT, dropped briefly to about $0.115 on Friday before climbing back past $0.15, per figures from CoinGecko. The coin exchanged hands near $0.1496 at the time of writing, marking a nearly 14% rise across the preceding 24 hours.
Initia has not officially verified the calculated losses or the exact trigger behind the exploit, and the total effect on participants along with the schedule for bringing network functions back online remain uncertain. Cointelegraph was unable to reach Initia for further commentary via its official X profile.
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