Initia Halts Layer 1 and Rollups After Security Incident as Researcher Reports $2.6 Million Cash-Out

Initia suspends its Layer 1 blockchain and rollups following a security incident and a researcher’s report of unauthorized token minting.

Initia halted its Layer 1 blockchain and rollups on October 23 following a security incident, while a security researcher reported that an attacker had minted tokens without authorization and cashed out approximately $2.6 million.

According to Wu Blockchain, Initia said its Layer 1 network and rollups had been halted as of 15:41 UTC on October 23. The team was investigating the scope of the incident alongside validators, cryptocurrency exchanges and security firms.

The reported unauthorized token minting and cash-out amount came from security researcher @spreekaway. The researcher said the attacker had cashed out about $2.6 million so far, with additional funds still in transit. Initia had not confirmed the reported loss amount or identified the technical cause of the incident in the information available at the time of the report.

Investigation Underway After Network Halt

The suspension affected both Initia's Layer 1 network and its rollups. The halt marked the project's immediate response as its team worked with validators, exchanges and security firms to establish the scope of the security incident.

The involvement of these parties indicates that the investigation extended beyond the project team alone. However, the available report did not specify which rollups were affected, how the alleged unauthorized minting occurred, or whether the investigation had identified the vulnerability involved.

Initia's statement confirmed the network halt and ongoing investigation, but it did not establish the total financial impact. The approximately $2.6 million figure remained an estimate reported separately by @spreekaway rather than a loss amount confirmed by Initia.

Reported Funds Still in Transit

The security researcher also said additional funds remained in transit after the attacker had cashed out about $2.6 million. The report did not quantify those additional funds or explain their destination, so the eventual amount involved could not be established from the information provided.

The distinction between funds already cashed out and funds still in transit is relevant to assessing the incident's reported financial impact. Nevertheless, the available information did not provide a final accounting of the alleged activity.

Wu Blockchain reported the incident, including Initia's network suspension and the researcher's account of unauthorized token minting. As of the report, the technical cause, markets full scope of the impact and confirmed loss amount remained unresolved.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.