Key facts
- Initia halted its layer-1 blockchain and rollups following a security incident.
- An attacker exploited a vulnerability to mint 2 million AUSD tokens without sufficient backing.
- Approximately $2.6 million in crypto assets were drained and transferred to Ethereum.
Initia, a layer-1 blockchain designed to support interconnected rollups, suspended its network and rollups on Friday after an exploit allowed an attacker to mint tokens and drain over $2.6 million in crypto assets. The incident occurred at 3:41 p.m. UTC, according to the Initia team. Security researchers identified unauthorized minting of AUSD tokens, with the attacker subsequently transferring approximately 1.4 million AUSD, 105 Ether, and 1.08 million USDC to Ethereum. The stolen funds were consolidated into an Ethereum wallet holding about 1,135.5 ETH, valued at $2.73 million. D2 Finance attributed the exploit to a vulnerability in a Move function.