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UNIInitia halts blockchain after hacker mints $2.7m in tokens, co-founder says
Initia stopped its L1 chain and connected rollups after an attacker minted and bridged out about $2.7m in AUSD, ETH and USDC, co-founder Ezaan Mangalji said.
Why it matters: A flaw in a live layer one chain let an attacker mint and bridge out millions in stablecoins and ETH, reviving questions about the security of interconnected rollup networks.
Key points
- Initia halted its L1 and rollups on 23 Oct 2026 at 3:41:30 PM UTC, citing a security incident.
- Agora said AUSD was not compromised, while Upbit suspended INIT deposits and withdrawals.
Initia halted its layer one blockchain and connected rollups after a hacker minted about $2.7m in tokens, the project's co-founder Ezaan Mangalji said. The network went offline on 23 Oct 2026 at 3:41:30 PM UTC, according to a post from the official Initia account on X.
Mangalji described the breach as a previously unknown flaw in Initia's MoveVM on Cosmos SDK.
Agora, the company behind the AUSD stablecoin, said it has no smart contracts on Initia and that its token was unaffected. It said it would freeze funds linked to hacker addresses holding AUSD on chains where its contracts are deployed. South Korean exchange Upbit suspended INIT deposits and withdrawals.
About seven hours after the incident the chain remained halted at block height 23365925, and developers had not said when operations would resume. INIT fell after the news but later rebounded, standing 12.5% higher over 24 hours and up 65.8% since 23 Sept.
What to watch: Initia's team is still investigating the incident with security teams, validators and exchanges, and has not said when the chain will resume.
Live updates on NewsFeeds:AltcoinsDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
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