Initia Exploit: Reports of Hackers Minting Tokens, Moving Millions to Ethereum
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Written by Nate Kostar, staff writer, and edited by Robert Lakin, staff editor.
Initia halts blockchain after exploit reportedly drains over $2.6M
Latest News
Published: Oct 23, 2026
Initia suspended its layer-1 network and rollups after security researchers discovered unauthorized token minting and millions in assets transferred to Ethereum.
The blockchain was halted at 3:41 p.m. UTC on Friday following a security incident, as stated in a post on X. The team is collaborating with security researchers, validators, and exchanges to assess the full impact.
Security researcher Spreek first flagged the exploit, revealing an attacker had minted tokens without authorization and transferred approximately $2.6 million in assets to Ethereum. DeFi platform D2 Finance later reported that the attacker exploited a Move function vulnerability, minting 2 million AUSD tokens without sufficient backing and withdrawing 1.4 million AUSD, 105 ETH, and 1.08 million USDC.
The stolen assets were consolidated into an Ethereum wallet holding roughly 1,135.5 ETH, worth approximately $2.73 million.
Initia has not publicly disclosed the specific losses or the exact cause of the exploit, and the extent of the impact on users and the timeline for restoring network operations remain unclear.
Source: Initia
Initia is a layer-1 blockchain supporting a network of interconnected rollups called Minitias. Its native token, INIT, experienced a dip to around $0.115 on Friday before rebounding above $0.15, according to CoinGecko data. As of the time of writing, the token traded near $0.1496, a 14% increase over the previous 24 hours.