Initia Suspends Network After Unauthorized Token Minting
Initia stopped its main network and linked rollups after an attacker created tokens without permission and moved over $2.6 million in assets to Ethereum. D2 Finance attributed the incident to a flaw in a Move-language function that let the attacker issue unbacked AUSD and swap it for Ethereum-held assets. The project has not confirmed the loss amount or cause, and it has not said when operations will resume; its INIT token dipped before rebounding.
Initia stopped its main chain and associated rollups on Oct. 23 at 3:41 p.m. UTC after detecting the breach. It said it was coordinating with researchers, validators and exchanges. Researcher Spreek said the attacker minted tokens and swapped roughly $2.6 million, while more funds were still moving.
D2 Finance said 2 million AUSD were created without backing. About 1.4 million AUSD, 105 ETH and 1.08 million USDC were bridged to Ethereum, then gathered in a wallet holding roughly 1,135.5 ETH, then worth about $2.73 million. D2 tied the issue to a Move-language function flaw. Initia has not confirmed the loss or cause, set a restart date, or clarified user impact.
The halt could affect traders and holders of INIT, users of Initia and its Minitias, and DeFi participants exposed to AUSD, since transfers may pause and asset values may shift. Exchanges and validators may face added monitoring burdens. If the flaw is confirmed, it may prompt more scrutiny of Move-based contracts and cross-chain bridges, though the incident’s broader societal impact likely depends on how quickly operations resume and losses are clarified.