Initia hack drove its USDC bridge reserve down to $63 as withdrawals failed
Bitquery traced Initia’s October 23 exploit to drained bridge reserves: Noble’s USDC backing fell from about $1 million to $63 before recovering to roughly $24,000 later that day. It counted 55 failed ordinary withdrawals, while Initia said its L1 and rollups halted at 15:41 UTC. Bitquery estimated about $3 million in real assets were paid out, compared with roughly $7 million in unauthorized balances. Initia blamed a MoveVM script-caching bug that allowed unbacked WETH, iUSD and USDC balances without increasing reported supplies; it said no native INIT was created. The network remained halted on October 24 as a fix and audit were expected within days. Recovery efforts continued, but restart timing and reimbursement terms remained unresolved. The depleted reserve affected bridged assets, not Circle’s issuer-wide USDC backing.
