Layer-1 Blockchain Initia Halts Entire Network After $2.6 Million Hack

Initia, a layer-1 blockchain, halted its entire network after a hacker exploited an unauthorized token-minting vulnerability and stole about $2.6 million in crypto assets.

Cointelegraph reported on October 24 that Initia shut down all rollup networks connected to its layer-1 mainnet immediately after the security incident. In a post on X, Initia said it is working with security researchers, validators and exchanges to determine the extent of the losses.

Blockchain security researcher Spreek, who first detected the attack, said the hacker minted tokens without authorization and then converted them into assets worth about $2.6 million. Additional funds are still being moved.

D2 Finance said the attacker minted 2 million AUSD tokens without collateral, then withdrew 1.4 million AUSD, 105 Ether and 1.08 million USDC to the Ethereum network through cross-chain transfers. The stolen assets were later consolidated into a single Ethereum wallet, which now holds about 1,135.5 Ether.

Initia's native token, INIT, plunged to about $0.115 immediately after the incident before rebounding above $0.15.

Upbit, a South Korean crypto exchange, posted an investor caution notice on Initia shortly after the hack.