Initia halts blockchain after exploit reportedly drains over $2.6M
Summary
Initia halted its layer-1 blockchain and rollups after an exploit enabled an attacker to mint unbacked AUSD tokens and move assets across chains. Researchers estimated about $2.6 million was stolen, including AUSD, ETH and USDC, later consolidated into an Ethereum wallet worth roughly $2.73 million. Initia said it was investigating with researchers, validators and exchanges, but has not confirmed the loss estimate or vulnerability details. The extent of user impact and the timeline for restarting the network remain unknown. INIT briefly fell to about $0.115 before recovering above $0.15.
