Initia Pauses Rollups After Unauthorized Transfers From Asset Account

Initia coordinated a temporary halt at affected rollups while it investigates unauthorized transfers from a mainnet account that held assets used across multiple rollups. The team said it has found no evidence that user funds were affected so far.

Initia said it coordinated with validators to pause network operations at 1:18 a.m. ET Nov. 10 (06:18 UTC), after detecting the transfers. Initia’s preliminary investigation points to a suspected compromise of keys tied to rollup infrastructure and forged Inter-Blockchain Communication (IBC) transactions, which move assets between blockchain networks.

Before the pause, about 605,000 USD Coin (USDC) and other tokens valued at about $10,000 were transferred through Noble from the account, Initia said. Most of the other assets moved from the account remained on the paused layer-1 network. Initia is working with security teams, validators and exchanges to assess the incident's scope.

Initia also said services including Initia Scan had performance problems. The team is working to restore block production at affected rollups as soon as possible.