Initia halts L1 blockchain after compromised keys drain $615,000
The Initia Layer 1 blockchain halted block production after an attacker used compromised rollup infrastructure keys to fabricate transfers, moving about $615,000 off-chain.
Initia paused its Layer 1 blockchain at 06:18 UTC on Nov. 10 after identifying unauthorized withdrawals from bridge escrow accounts that hold assets linked to rollups, according to a team announcement cited by Protos and initial reports from Solid Intel and The Block. The attacker gained access through compromised rollup infrastructure keys to fabricate Inter-Blockchain Communication transfers, routing approximately $605,000 in USDC and around $10,000 in other tokens out of the network.[3][2][4]
The Initia team reported that while $615,000 reached off-chain destinations, most assets removed from the escrow accounts remained on Initia and could potentially be recovered through validator coordination. The breach represents the second security incident for the network in less than three weeks, following an October MoveVM script caching exploit that resulted in $2.7 million bridged to Ethereum. Total losses across the two attacks stand at roughly $3.3 million, an amount surpassing Initia's remaining total value locked.[4]
Despite the halt, Initia's native INIT token gained over 61% over a 24-hour window, trading near $0.21, according to data from CoinGecko. The counterintuitive price rally prompted suspicions of a crime pump among frustrated users. Initia, which serves as an interwoven rollup liquidity hub, counts Binance Labs, Delphi Ventures, and HackVC among its backers.[1][4]
Key facts
- Initia halted its Layer 1 network at 06:18 UTC on Nov. 10 in coordination with validators following unauthorized bridge escrow transfers.
- An attacker compromised rollup infrastructure keys to fabricate IBC transfers, moving about $605,000 in USDC and $10,000 in other tokens off-chain.
- Initia stated that most drained assets remain on the network and may be recoverable.
- The incident is Initia's second exploit in less than three weeks, following a $2.7 million MoveVM spoofing attack in late October.
- Combined losses of roughly $3.3 million exceed Initia's remaining total value locked, which is down over 90% from its launch peak.
- INIT climbed 61.5% in 24 hours to $0.212663 despite the network halt, according to CoinGecko.
Sources · 4 sources
- CO
CoinGecko@coingeckoPost on X ·
INSIGHT: $INIT is up 61.5% in 24 hours despite Initia pausing its Layer 1 after compromised rollup infrastructure keys were used to move about $605K in USDC out of the network. https://t.co/ft7AgkM7Oz
Open source - TB
The Block@TheBlockCoPost on X ·
THE BLOCK: Initia halted its L1 blockchain after unauthorized transfers drained approximately $605,000 in USDC from rollup escrow accounts. The team said compromised infrastructure keys were used to fabricate IBC transfers. About $10,000 in other tokens also left the network before the halt.
Open source - SI
Solid Intel 📡@solidintel_xPost on X ·
INTEL: Initia L1 halts block production after about $605,000 USDC drained in unauthorized transfers
Open source - PR
ProtosArticle ·
Binance Labs-backed Initia hacked again, $3.3M lost in three weeks The Initia blockchain was halted Tuesday morning after suffering its second security incident in less than three weeks. An infrastructure key compromise has led to at least $615,000 in losses which, when added to the $2.7 million lost in October, comes to more than the chain’s remaining total value locked (TVL). The Initia L1 was halted at 06:18 UTC on November 10 in coordination with validators as a protective measure. We took this step after identifying unauthorized transfers from the escrow accounts on the Initia L1 that hold assets bridged to several rollups. Our investigation so… — Initia (@initia) November 10, 2026 Read more: BitMart hit by $391K hack amid security staff exodus Claiming the likes of Binance Labs, Delphi Ventures, and HackVC among its backers, Initia L1 acts as a “base layer and central liquidity hub for all Interwoven Rollups.” On Tuesday morning, the Initia X handle announced a chain halt in response to the discovery of “unauthorized transfers from the escrow accounts on the Initia L1 that hold assets bridged to several rollups.” The post blamed “compromised rollup infrastructure keys allowing an attacker to fabricate IBC transfers” and tallied $615,000 that made it off-chain. However, “most” of the assets removed from escrow accounts remain on Initia, indicating that they may be recoverable via validator coordination. Second hack in three weeks Tuesday’s hack comes less than three weeks after a script caching bug let an attacker “artificially [spoof] the MoveVM state, thereby crediting themselves with unbacked WETH, iUSD, and USDC tokens.” That incident led to $2.7 million in losses bridged to Ethereum, and was also met with a halt of Initia chain and its rollups. They came back online on November 2 before being hacked again eight days later. The combined losses of $3.3 million across the two incidents is greater than Initia’s remaining TVL , which is down over 90% from its peak shortly after launching in May last year. Reactions to this most recent incident have been aggressive, with users urging the chain to shut down and accusing the team of an inside job. Strangely, Initia’s INIT token is up around 60% over the last 24 hours, leading to suspicions of a “crime pump” from frustrated users. Got a tip? Send us an email securely via Protos Leaks . For more informed news and investigations, follow us on X , Bluesky , and Google News , or subscribe to our YouTube channel. The post Binance Labs-backed Initia hacked again, $3.3M lost in three weeks appeared first on Protos .
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