Initia halts L1 and rollups: attacker mints tokens without a cap and takes out $2.7 million

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.An attacker was able to mint tokens without any cap on the Initia blockchain and took out $2.6 to $2.7 million. The project has halted layer 1 and the rollups, and Upbit has suspended deposits and withdrawals for INIT.Initia’s blockchain has stopped. On October 23, 2026 at 15:41:30 UTC the project halted its layer 1 blockchain and the rollups built on top of it, after an attacker was able to create tokens without any cap through a flaw in the minting mechanism. According to co-founder Ezaan Mangalji, the attacker extracted around $2.7 million in the stablecoins AUSD and USDC and in ether before the blockchain was stopped. If you hold assets on that blockchain, the consequence is very concrete: balances sitting on it cannot be moved while it stands still. Balances held on an exchange are not affected for now, because exchanges settle internally. What happened on the Initia blockchain on October 23, 2026 Initia’s official account on the platform X announced the halt with the exact...