Initia Halts Blockchain and Rollups After Reported Exploit

Initia halted its Layer 1 blockchain and connected rollups after a security incident involving reported unauthorized token creation and transfers of digital assets to Ethereum. The project said the suspension began at 3:41 p.m. UTC on October 23, 2026, as it worked with security teams, validators and exchanges to assess the impact. A security researcher, Spreek, estimated that about $2.6 million had been cashed out while transfers were still underway. The estimate was an early account, not a final loss figure. Initia’s initial announcement did not confirm the amount lost or identify the technical cause. D2 Finance reported that 2 million AUSD tokens were created and that transfers to Ethereum involved about 1.4 million AUSD, 105 ETH and 1.08 million USDC. Those figures describe transactions reported by the platform; they do not establish a final accounting of losses or how much belonged to users. The AUSD account is disputed. Agora said the incident involved a third-party product using AUSD and that it had no smart contracts deployed on Initia. The available accounts do not resolve whether the alleged AUSD creation occurred on Initia or through that product. In a later update,...