Initia says $3.27M stolen in exploit, with $2.16M stuck on halted L1

Layer-1 blockchain Initia said its investigation so far found an attacker gained unauthorized access to its infrastructure on Nov. 9 through a command injection attack using a stolen Google Cloud Platform key. With the compromised credentials, the attacker accessed rollup hosting platform Anvil, approved forged IBC withdrawals across five rollups, and moved about $3.27 million in assets held in Initia L1’s IBC escrow account to the attacker’s own L1 address. Initia said $2.16 million of the stolen funds remains on a halted L1 and cannot be moved, adding the attacker has not withdrawn any INIT from Initia to external venues. The project said it is finalizing a plan to fully restore collateral backing the affected assets and expects rebuilding infrastructure in an isolated environment, while strengthening access controls and security, to take longer than a typical network restart.