Initia suspended its layer-1 blockchain and rollups on Friday following a security exploit that enabled unauthorized token minting and the transfer of over $2.6 million in crypto assets.
The network halted at 3:41 p.m. UTC after the incident was identified. Initia said it was coordinating with security researchers, validators and exchanges to assess the full scope of the damage.
Blockchain security researcher Spreek first reported the exploit, indicating that an attacker had minted tokens without authorization and converted approximately $2.6 million into other assets, with additional funds still being transferred.
DeFi platform D2 Finance provided further details, reporting that the attacker exploited a vulnerability in a Move function to mint 2 million AUSD tokens without proper backing. The attacker then used cross-chain transfers to withdraw approximately 1.4 million AUSD, 105 Ether and 1.08 million USDC to Ethereum.
The stolen assets were consolidated into an Ethereum wallet holding approximately 1,135.5 ETH, valued at $2.73 million. D2 Finance attributed the exploit to the Move function vulnerability, which allowed the creation of unbacked tokens that were then exchanged for assets on Ethereum.
Initia is a layer-1 blockchain designed to support a network of interconnected rollups called Minitias. The network's native token, INIT, experienced volatility following the incident. Initia has not publicly confirmed the estimated losses or the precise technical cause of the exploit, and the timeline for restoring network operations remains unclear.
