The startup halted its layer-1 blockchain and rollups after blockchain sleuths reported the exploit, which allowed an attacker to create token tokens without permission and withdraw more than $2.6 million in crypto assets.
The network was shut down at 3:41 UTC on Friday after a security incident, Initia said In a post on X, the team said it is working with security researchers, verifiers and exchanges to determine the full extent of the impact.
Blockchain Security Researcher First Spreek Put up the flag On Friday, the exploit reported that an attacker had created tokens without permission and converted about $2.6 million into other assets, with additional funds still being transferred.
DeFi platform D2 finance later Reported That the attacker took advantage of the risk of 2 million AUSD tokens without sufficient support. The attacker then used a cross-chain transfer to withdraw approximately 1.4 million AUSD, 105 Ether (ETH) and 1.08 million USDC (USDC) Ethereum.
According to D2 Finance, the stolen assets were later consolidated into an Ethereum wallet containing approximately 1,135.5 ETH, valued at $2.73 million. The firm attributed the exploit to a weakness in the move function that allowed an attacker to create unbacked tokens and exchange them for assets on Ethereum.
Source: India
Initia is a layer-1 blockchain designed to support a network of interconnected rollups, called Minitias. According to CoinGecko, its native token, INIT, briefly fell to around $0.115 before rebounding above $0.15 on Friday. Data. At the time of writing the token was trading around $0.1496, an increase of around 14% over the previous 24 hours.
Initia has not publicly confirmed the estimated losses or the exact cause of the exploit, and the extent of the impact on customers and the timeline for restoring network operations remain unclear. Cointelegraph was unable to reach Initia for additional comment through its official X account.
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