The layer-1 blockchain Initia suspended its network and associated rollups following a security incident identified on Friday. The pause occurred at 3:41 p.m. UTC. The development team is currently collaborating with validators, exchanges, and security researchers to assess the full scope of the breach.
Blockchain researcher Spreek reported that an attacker minted tokens without authorization. According to the DeFi platform D2 Finance, the exploit involved a vulnerability in a Move function, which allowed the creation of 2 million unbacked AUSD tokens. These were then used to withdraw approximately 1.4 million AUSD, 105 ETH, and 1.08 million USDC to the Ethereum network.
D2 Finance stated that the stolen assets were consolidated into an Ethereum wallet containing 1,135.5 ETH, valued at approximately $2.73 million. Initia has not yet provided an official confirmation regarding the total losses or the specific cause of the incident.
Following the news, the native token INIT experienced volatility, dropping to $0.115 before recovering to trade near $0.1496. The timeline for restoring full network operations remains undisclosed by the project team.
