Initia halts L1 after unauthorized transfers from escrow account

Layer-1 blockchain Initia said on X it confirmed unauthorized asset transfers from an escrow account and, in consultation with validators, halted its L1 network at 6:18 a.m. UTC on Nov. 10 as a protective measure. According to an initial investigation, the attacker forged IBC transfers using a compromised rollup infrastructure key. Before the shutdown, about $605,000 worth of USDC and about $10,000 worth of other tokens were moved out of Initia through Noble, while most of the remaining assets transferred from the escrow account appear to remain on the halted L1. Initia was also exposed to a vulnerability attack on Oct. 24, when more than $2.6 million in crypto was stolen.