Initia halted its layer 1 blockchain after detecting unauthorized transfers from escrow accounts holding assets bridged to several rollups. According to the team, compromised rollup infrastructure keys allowed an attacker to fabricate Inter-Blockchain Communication transfers and steal approximately $605,000 in USDC through Noble, along with $10,000 in other tokens. Most of the remaining assets moved out of the escrow accounts are still halted on layer 1, while the team continues investigating the incident. This was Initia’s second exploit in less than a month, following an approximately $2.7 million theft that exploited its MoveVM script caching system. Despite the network shutdown, the INIT token was up nearly 60% over 24 hours at the time of writing, while remaining 84% below its May 2025 all-time high of $1.42.
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