After blockchain investigators reported a vulnerability exploitation incident, Initia suspended its Layer blockchain and rollup. The incident is alleged to have allowed attackers to mint tokens without authorization and transfer over $2.6 million in crypto assets.
At 3:41 PM on Friday ( UTC ), Initia posted on X stating that the network had been suspended due to a security incident. The team mentioned that they are working with security researchers, verifiers, and exchanges to determine the full extent of the impact.
Blockchain security researcher Spreek first pointed out this vulnerability exploit on Friday, stating that attackers minted tokens without authorization and converted approximately $2.6 million into other assets, with additional funds still being transferred.
DeFi The platform D2 Finance subsequently reported that the attacker exploited a vulnerability to mint 2 million AUSD tokens, which did not have sufficient collateral support. Subsequently, the attacker transferred approximately 1.4 million AUSD, 105 Ether ( ETH), and 1.08 million USDC ( USDC) to Ethereum through cross-chain transfers.
According to D2 Finance, the stolen assets were subsequently integrated into an Ethereum wallet, which held approximately 1,135.5 ETH, worth 2.73 million US dollars. The company attributed this exploit to a vulnerability in the Move function, which allowed attackers to create unsecured tokens and exchange them for assets on Ethereum.
Initia is a Layer blockchain designed to support a network composed of interconnected rollup, namely Minitias. Data shows that its native token, INIT, fell to around $0.115 on Friday before rebounding above $0.15. At the time of writing this article, the token was trading at around $0.1496, representing a gain of about 14% over the previous 24 hours.
Initia has not yet publicly confirmed the exact cause of the estimated losses or the exploitation of vulnerabilities, and the scope of impact on users, as well as the timeline for restoring network operations, remain unclear. Cointelegraph was unable to contact Initia through their official X account to obtain further comments.
