Initia suspended its layer-1 blockchain and associated rollups after security researchers reported that an attacker had minted tokens without authorization and moved millions of dollars in crypto assets to Ethereum.
The network was halted at 3:41 p.m. UTC on Friday, according to an announcement from Initia on X. The project said it was coordinating with security researchers, validators and cryptocurrency exchanges to assess the incident and determine its full impact.
According to Cointelegraph, the first public warning came from blockchain security researcher Spreek. The researcher said an attacker had created tokens without permission, converted about $2.6 million into other digital assets and continued moving funds.
How the exploit reportedly unfolded
DeFi platform D2 Finance said the attacker took advantage of a vulnerability that permitted the creation of 2 million AUSD tokens without adequate backing. AUSD is a digital token involved in the reported transactions; the source material does not state that it was fully collateralized at the time of the exploit.
The attacker then used cross-chain transfers to move approximately:
- 1.4 million AUSD
- 105 Ether (ETH)
- 1.08 million USD Coin (USDC)
The assets were transferred to Ethereum and later consolidated into one Ethereum wallet. D2 Finance said that wallet held about 1,135.5 ETH, valued at approximately $2.73 million.
The firm attributed the incident to a flaw in a Move function, a piece of code used by the network, which allegedly allowed the attacker to create tokens without backing and exchange them for assets on Ethereum. Initia has not publicly confirmed either the estimated losses or the precise technical cause.
Network and token impact
Initia is a layer-1 blockchain built to support interconnected rollups called Minitias. A layer-1 network provides the underlying blockchain infrastructure, while rollups generally process transactions through connected systems that rely on the main network’s broader architecture.
Initia halted both its main blockchain and its rollups after the incident was identified. The project has not given a timetable for restarting operations. The effect on users and the full scale of any losses also remain unclear.
Initia’s native INIT token briefly dropped to around $0.115 on Friday before recovering above $0.15. CoinGecko data cited in the source placed it near $0.1496 at the time of writing, up about 14% over the previous 24 hours. Initia has not confirmed those market-related figures or provided additional public detail through the information available.
Current crypto market picture
Moneyiar market data at 08:03-08:04 on October 24, 2026, showed a mixed-to-weaker picture among the listed assets:
- Ethereum: $2,371.6867878548, down 1.18% in 24 hours and 2.45% over seven days.
- Shiba Inu: $0.0000049208, down 2.46% in 24 hours and 3.05% over seven days.
- Uniswap: $6.8458431305, down 5.45% in 24 hours and 6.18% over seven days.
- Pepe: $0.0000044181, down 4.59% in 24 hours but up 10.55% over seven days.
The halt leaves key questions unresolved, including how much of the reported money can be recovered, whether other assets were affected and when Initia’s blockchain and rollups will resume. The project said its investigation was continuing with the parties involved.
