Initia halted its layer-1 blockchain on November 10 after unauthorized transfers from escrow accounts. The team reported approximately $615,000 in unauthorized transfers, while CertiK counted roughly $636,000. The INIT token gained 61.31% over 24 hours.
Initia stopped block production at 06:18 UTC on November 10 after the team coordinated with validators to prevent further unauthorized transfers. It is the network's second halt in less than three weeks. The preliminary investigation found that attackers had accessed escrow accounts holding assets bridged between Initia's main blockchain and its connected rollups.
Compromised keys are the apparent attack method
Initia said the attacker apparently used compromised rollup infrastructure keys to fabricate Inter-Blockchain Communication (IBC) transfers, which moved assets without proper authorization. Before the halt, approximately $605,000 in USDC and another $10,000 in other tokens had left the network through Noble.
Security firm CertiK reported roughly $636,000 in suspicious outflows across 16 successful IBC transfers from an Initia address to Noble. That figure exceeds Initia's estimate, and neither statement establishes the final amount of unrecoverable funds. The team has not explained how the credentials were obtained, and it has not said when block production will resume or whether affected users will receive reimbursement.
Initia resumed operations on November 2 after an October exploit
The November halt follows an October 23 suspension that came after unauthorized token creation. In an October 24 statement, Initia said an attacker had exploited a vulnerability in its MoveVM script-caching system, and approximately $2.7 million was bridged out before validators halted the network. The project resumed operations on November 2 after a MoveVM patch.
On November 9, Initia disclosed a separate issue affecting rollup infrastructure. The team said it had coordinated temporary rollup pauses while the main blockchain stayed operational. The later investigation identified the escrow transfers and led to the November 10 shutdown.
INIT jumps over 60% during the halt
According to CoinGecko, INIT traded near $0.2057, a 61.31% increase over 24 hours. Trading volume reached approximately $84.81 million, and the token's market capitalization stood near $46.37 million. INIT also gained 54.22% over the preceding seven days.
Initia has not confirmed whether the same attacker was behind both incidents. It has warned users against unofficial links, messages and recovery claims circulating during the investigation.
Source: crypto.news
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