Initia halts layer-1 chain and rollups after exploit reportedly drains $2.6 million
In brief
- Initia network halted at 3:41 p.m. UTC Friday after a security incident, the project said on X.
- Researcher Spreek and D2 Finance reported more than $2.6 million drained via unauthorized token minting.
- D2 Finance said a Move function vulnerability enabled minting of 2 million unbacked AUSD.
- Initia has not confirmed the estimated losses or the precise cause of the exploit.
- INIT briefly fell to about $0.115 before rebounding above $0.15, per CoinGecko data.
What researchers reported
Blockchain security researcher Spreek first flagged the exploit on Friday. According to Spreek, an attacker minted tokens without authorization and converted approximately $2.6 million into other assets (with more funds still being moved at the time of the report).
DeFi platform D2 Finance filled in more of the picture. The attacker exploited a vulnerability to mint 2 million AUSD tokens without sufficient backing, D2 Finance said, then used cross-chain transfers to withdraw the proceeds to Ethereum. That haul included approximately 1.4 million AUSD and 1.08 million USDC, along with 105 ETH.
According to D2 Finance, the stolen assets were later consolidated into an Ethereum wallet holding about 1,135.5 ETH, worth $2.73 million. The firm attributed the exploit to a vulnerability in a Move function that let the attacker create unbacked tokens and exchange them for assets on Ethereum.
Initia hasn't confirmed any of those figures.
What Initia has said
Initia is a layer-1 blockchain designed to support a network of interconnected rollups known as Minitias (the halt covered those rollups as well as the base chain). The team said it's working with security researchers, validators and exchanges to determine the full extent of the impact.
That's about where the official account stops. The extent of the impact on users is still unclear, and so is the timeline for restoring network operations. Cointelegraph said it was unable to reach Initia for additional comment through the project's official X account.
INIT price reaction
Initia's native token, INIT, briefly fell to around $0.115 on Friday before rebounding above $0.15, according to CoinGecko data cited by Cointelegraph. It was trading near $0.1496 at the time of that report, up about 14% over the previous 24 hours.
It's a quick recovery. It also happened while the network was still halted and the losses were still unconfirmed by the team.
Frequently asked questions
What caused the Initia exploit?
D2 Finance attributed the exploit to a vulnerability in a Move function that let the attacker create unbacked tokens and exchange them for assets on Ethereum. Initia itself has not publicly confirmed the precise cause or the estimated losses.
How much was taken in the Initia exploit?
Security researcher Spreek reported that roughly $2.6 million was converted into other assets. D2 Finance said the stolen assets were consolidated into an Ethereum wallet holding about 1,135.5 ETH, worth $2.73 million. Initia hasn't confirmed the figures.
When will the Initia network restart?
No timeline has been given. Initia said the network was halted at 3:41 p.m. UTC on Friday, and the timeline for restoring network operations remained unclear at the time of Cointelegraph's report.
