Initia has halted its layer-1 blockchain and rollups after security researcher Spreek reported an unauthorized token mint and the withdrawal of roughly $2.6 million by an attacker.
In its statement of October 23, Initia confirmed that the halt took effect at 15:41:30 UTC, and that security teams, validators, and exchanges were involved in investigating the incident. The statement pointed to a security incident but did not specify the amount of damage or describe the underlying vulnerability.
Initia confirmed the network halt while investigators assess the damage
The network team said it was working to establish the full scope of the consequences, without naming in its statement the affected applications, losses to individual users, or a timeline for resuming operations.
“We will share verified information through our official channels as it becomes available“.
Initia urged users to exercise caution regarding unofficial links, messages, and claims circulating during the investigation. The warning was accompanied by an announcement that both the base blockchain and its rollup blocks had ceased operations.
A separate post from Spreek described how tokens were issued without authorization and stated that $2.6 million had already been cashed out. The researcher warned that other funds were still in circulation at the time of publication, so the figure is a preliminary estimate.
The two messages presented different parts of the initial report. Initia confirmed the suspension of operations, while the researcher provided an estimate of the moved assets and a claim of unauthorized minting.
The Defiant reported that Ethereum records showed an exchange into stablecoins followed by a transfer of 1135.5 ETH. The report cited Spreek’s estimate of $2.6 million, but the transfer of ETH was not presented as a separate theft to be added to that amount.
An earlier analysis attributed to D2 Finance described the creation of 2 million unbacked AUSD tokens and the withdrawal of 1.4 million AUSD, 105 ETH and 1.08 million USDC on Ethereum. These figures remain the platform’s official data; a full independent reconciliation for this project is not available.
.A subsequent report from The Defiant stated that 1.4 million AUSD was withdrawn from a bridge adapter. Agora said the incident involved a third-party product using AUSD, and that it had no smart contracts deployed on the Initia platform.
Agora’s statement refutes a previously published claim that their stablecoin was issued on the network. The exact relationship between the allegedly created tokens, the bridge transfers, and the assets obtained on the Ethereum network still requires confirmation as part of the project’s technical investigation.
The monetary amounts appearing in the initial reports describe different events that occurred during the incident. They have not been established as a final, agreed-upon loss figure, and the available on-chain statement does not indicate which portion belonged to individual users.
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