INERTIA

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 far indicates that the transfers were made using compromised rollup infrastructure keys allowing an attacker to fabricate IBC transfers. Our preliminary review indicates that approximately $605,000 USDC left Initia through Noble along with $10k in other tokens before the network was paused. Most of the remaining assets moved out of the escrow accounts are still on the halted L1. We are working to determine the full scope with security teams, validators, and exchanges. We will share more details as they become available. Please remain cautious of unofficial links, messages, or claims.

The Initia L1 and rollups are now online and operational. Thank you for your trust and patience. We are so back.

The Initia L1 and rollups are planned to resume operations on Monday, November 2, 2026. The chain upgrade will apply the independently audited MoveVM patch, isolate the attacker’s remaining forged balances, and enable additional security measures without rolling back transaction history. The backing of AUSD0, USDC.n and WETH will be fully restored before the restart and no user action is required. Additionally, to protect users and liquidity providers, the Initia DEX will begin paused for a brief window while a designated account rebalances the pools toward market prices. Any profits from rebalancing will be returned to the affected liquidity providers. Bridges and exchanges are expected to resume transfers after the network has been monitored. Out of an abundance of caution, withdrawal times for LayerZero OFTs WETH and AUSD0 will be set to 24h. We will provide additional communication on Monday when the network is fully live, operational, and ready for use. Thank you for your patience. Please remain cautious of unofficial links, messages, or claims.

At 14:59 UTC on October 23rd, an attacker exploited a bug in Initia MoveVM’s script caching that allowed malicious code to bypass security checks. The attacker artificially spoofed the MoveVM state, thereby crediting themselves with unbacked WETH, iUSD, and USDC tokens without changing the corresponding token’s total supply. No native INIT was minted, and the total INIT supply is unaffected. Before the network was halted, the attacker bridged out roughly $2.7M, comprising of 105 WETH and ~1.4M AUSD0 via LayerZero along with ~1.08M USDC via Noble and CCTP. The tokens were swapped for 1,135.52 ETH and currently sit in 0x358ef0130f7a5aa516dcd81bdc80b18cde41cac8 on Ethereum Mainnet. We are actively working on a security fix to patch the identified vulnerability. We expect this to be completed and audited in a few days. Additionally, asset recovery efforts are ongoing with the help of security partners. The Initia L1 and Rollups remain halted as we work toward a resolution. We hope to safely resume network operations as soon as possible and will provide a full post-mortem once available. In the meantime, we will continue to share verified updates through our official channels. Please remain cautious of unofficial links, messages, or claims.

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