Initia Halts Network After Exploiter Drains $2.7 Million via MoveVM Vulnerability

Initia's Layer 1 blockchain and rollups remain halted as the project prepares a security patch and pursues asset recovery following a $2.7 million exploit. On Oct. 23, an attacker exploited a MoveVM script-caching flaw on Initia to create unbacked balances, bridging assets including 1.4 million AUSD, approximately 1 million USDC, and 105 ETH to Ethereum in just over seven minutes. The assets were converted via 1inch into 1,135.5 ETH, which the exploiter moved to a secondary wallet seconds after the network shutdown. Stablecoin issuer Agora froze an address post-swap, while native INIT supply remained unaffected.