Initia Halts Blockchain After Unauthorized Token Minting, Transfers $2.6M to Ethereum: 10 outlets compared - NewsCord
Initia has halted its layer-1 blockchain and rollups following a security incident where attackers minted unauthorized tokens and transferred approximately $2.6 million to Ethereum.
Initia halted its network on Friday after security researchers reported unauthorized token minting and millions in assets being transferred to Ethereum. The suspension took effect at 3:41:30 p.m. UTC, with the team working with security researchers, validators and exchanges to determine the full impact of the breach.
Exploit Details
Security researcher Spreek first flagged the exploit, reporting that an attacker minted tokens without authorization and converted approximately $2.6 million into other assets. D2 Finance later detailed that the attacker exploited a vulnerability to mint 2 million AUSD tokens without sufficient backing, then transferred approximately 1.4 million AUSD, 105 ETH and 1.08 million USDC to Ethereum.
The attacker was able to mint and bridge out ~$2.7m worth of AUSD, ETH, and USDC before the chain was paused.
Response and Impact
Agora disputed the AUSD minting account, stating it has no smart contracts on Initia and would only freeze funds related to hacker addresses on chains where AUSD contracts are deployed. The stolen assets were consolidated into an Ethereum wallet holding approximately 1,135.5 ETH, worth $2.73 million.
Initia's native INIT token briefly fell to around $0.115 on Friday before rebounding above $0.15, trading near $0.1496 at the time of writing, an increase of about 14% over the previous 24 hours. The team urged users to remain cautious about unofficial links and claims during the investigation.
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