Initia Halts Blockchain Following $615K Exploit

Initia halted its layer-1 blockchain at 06:18 UTC on November 10 following unauthorized escrow transfers involving compromised rollup infrastructure keys, according to CryptoNews.

Unauthorized Escrow Transfers

According to CryptoNews, attackers used compromised rollup infrastructure keys to fabricate Inter-Blockchain Communication (IBC) transfers from affected escrow accounts. Initia reported approximately $615,000 in unauthorized transfers, while blockchain security firm CertiK identified roughly $636,000 across 16 successful IBC transfers from an Initia address to the Noble blockchain.

The preliminary investigation found that attackers accessed escrow accounts containing assets bridged between Initia’s main blockchain and its connected rollups. Before the halt, approximately $605,000 in USDC and $10,000 in other tokens left the network through Noble. Initia stated that most of the remaining assets transferred from affected accounts remained on its halted layer-1 network.

Previous Security Incidents

The November 10 suspension follows an October 23 exploit involving approximately $2.7 million in unauthorized transfers caused by a vulnerability in the MoveVM script-caching system. Following a patch, operations resumed on November 2. On November 9, the project reported a separate rollup infrastructure issue before the subsequent main blockchain shutdown.

Initia stated it is working with security specialists, validators, and cryptocurrency exchanges to determine the full scope of the incident. The team has not announced when block production will resume or whether affected users will receive reimbursements.

Native Token Movement

Despite the network halt, Initia's native token ($INIT) gained more than 60% over a 24-hour period. CoinGecko market data indicated the token traded near $0.2057, with daily trading volume reaching approximately $84.81 million and a market capitalization near $46.37 million.

Key facts

• Initia halted its layer-1 blockchain at 06:18 UTC on November 10.
• Attackers used compromised rollup infrastructure keys to fabricate IBC transfers.
• Initia reported about $615,000 in unauthorized transfers, while CertiK detected approximately $636,000.
• The native INIT token rose over 60% during the blockchain suspension, trading near $0.2057.