Initia suspends L1 and Rollups after security incident: attacker mints tokens and bridges out about $2.7 million
According to reports by The Block, Cointelegraph and others, modular blockchain Initia suspended its Layer 1 and associated Rollups on Friday Beijing time following a security incident. Co-founder Zon’s initial assessment was that a “Day 0” vulnerability in MoveVM on Cosmos SDK allowed unauthorized minting, but “does not affect native INIT.” Before the suspension, the attacker minted tokens and bridged out about $2.7 million in AUSD, ETH and USDC; researcher Spreek’s initial estimate put the amount cashed out at about $2.6 million. Upbit, Bithumb and other exchanges have suspended INIT deposits and withdrawals. Agora said AUSD itself was unaffected and that it has no contracts on Initia. At the time of writing, the chain remained offline, with no restart timeline announced. INIT briefly fell about 14%, then turned positive for the day, gaining about 14%.
【Viewpoint】
Cross-chain bridges and wrapped assets remain high-risk areas: unauthorized minting was exchanged for real assets through a bridge adapter, showing how difficult it is for bridges to verify that burns are backed by sufficient locked assets. The Day 0 vulnerability in a new MoveVM implementation is also a reminder that the attack window remains acute after a new chain’s mainnet launch.
【Opportunities/Risks】
Watch for Initia’s official verification of losses and its restart plan. Risk premiums on bridged assets and wrapped cross-chain stablecoins may rise again. In broader markets, BTC remains near $81,000, and with the FOMC meeting next week alongside earnings reports from U.S. tech companies, risk appetite remains cautious.
What do you think: Is the “burn to redeem” design of cross-chain bridges still worth holding related assets in size?
#加密货币 #安全事件 #跨链 #DeFi
$ETH $BTC
For informational purposes only; this is not investment advice.
According to reports by The Block, Cointelegraph and others, modular blockchain Initia suspended its Layer 1 and associated Rollups on Friday Beijing time following a security incident. Co-founder Zon’s initial assessment was that a “Day 0” vulnerability in MoveVM on Cosmos SDK allowed unauthorized minting, but “does not affect native INIT.” Before the suspension, the attacker minted tokens and bridged out about $2.7 million in AUSD, ETH and USDC; researcher Spreek’s initial estimate put the amount cashed out at about $2.6 million. Upbit, Bithumb and other exchanges have suspended INIT deposits and withdrawals. Agora said AUSD itself was unaffected and that it has no contracts on Initia. At the time of writing, the chain remained offline, with no restart timeline announced. INIT briefly fell about 14%, then turned positive for the day, gaining about 14%.
【Viewpoint】
Cross-chain bridges and wrapped assets remain high-risk areas: unauthorized minting was exchanged for real assets through a bridge adapter, showing how difficult it is for bridges to verify that burns are backed by sufficient locked assets. The Day 0 vulnerability in a new MoveVM implementation is also a reminder that the attack window remains acute after a new chain’s mainnet launch.
【Opportunities/Risks】
Watch for Initia’s official verification of losses and its restart plan. Risk premiums on bridged assets and wrapped cross-chain stablecoins may rise again. In broader markets, BTC remains near $81,000, and with the FOMC meeting next week alongside earnings reports from U.S. tech companies, risk appetite remains cautious.
What do you think: Is the “burn to redeem” design of cross-chain bridges still worth holding related assets in size?
#加密货币 #安全事件 #跨链 #DeFi
$ETH $BTC
For informational purposes only; this is not investment advice.