Initia halted its layer-1 blockchain and rollups after researchers reported an exploit that let an attacker mint tokens without authorization and move crypto assets. Initia said it was working with security researchers, validators and exchanges to assess the impact. It has not confirmed the estimated losses or the precise cause, and the impact on users and the timeline for restoring the network remain unclear.
Researcher Spreek reported that the attacker converted approximately $2.6 million into other assets, with more funds still being moved. D2 Finance said a vulnerability in a Move function let the attacker mint 2 million AUSD tokens without sufficient backing and withdraw approximately 1.4 million AUSD, 105 ETH and 1.08 million USDC to Ethereum. It said the assets were later consolidated in a wallet holding approximately 1,135.5 ETH, worth $2.73 million.
