Initia Hacking Leads to $2.7 Million Leak

The modular blockchain Initia (INIT) has suspended its network due to a hacking incident. The attacker exploited a zero-day bug in MoveVM to unlawfully issue approximately $2.7 million worth of AUSD, ETH, and USDC and siphon them off. Initia announced that it halted L1 and rollups starting from 3:41:30 PM on the 23rd. The security team, validators, and exchanges are currently investigating the extent of the damage. Initia is a platform designed based on the Cosmos SDK, and vulnerabilities in the main chain can impact the entire ecosystem. The attacker issued 2 million AUSD without collateral and subsequently transferred approximately 1.4 million AUSD, 105 ETH, and about 1.08 million USDC to Ethereum via a cross-chain bridge. Agora (the issuer of AUSD) stated that it has never deployed its smart contract on Initia and that AUSD does not exist on Initia. The price of INIT dropped immediately after the incident but has risen by 12.5% in the last 24 hours. Initia will continue to suspend the deposit and withdrawal of INIT on domestic exchanges until it announces the extent of the damage and the schedule for resuming operations.

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