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Initia Pauses Network After $615,000 Security Breach as INIT Surges 60 Percent

Initia Pauses Network After $615,000 Security Breach as INIT Surges 60 Percent

CertiK identified approximately $636,000 in suspicious outflows across 16 IBC transactions involving Initia and Noble

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 10 November 2026 20:03 IST

Initia Pauses Network After $615,000 Security Breach as INIT Surges 60 Percent

Photo Credit: Unsplash/FlyD

Initia's investigation involves escrow wallets connected to its rollup ecosystem

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Highlights

Initia halted block production at 06:18 UTC on November 10
CertiK tracked suspicious transfers across 16 IBC transactions
INIT recorded a 61.31 percent gain over 24 hours

Initia has stopped its Layer-1 blockchain for the second time in less than three weeks following an attack through compromised rollup infrastructure keys resulting in unauthorised transfers, while its native INIT token has risen over 60 percent. According to an announcement on November 10, the network stopped generating blocks at 06:18 UTC after the team worked together with the validators to stop any more unapproved transactions. Its initial investigations have revealed that the attackers gained access to escrow wallets holding assets bridged from Initia's main chain to its rollups.

Compromised Rollup Infrastructure Keys Used to Fake IBC Transfers

Before the suspension, there was an outflow of around $605,000 (roughly Rs. 5.6 crore) in USDC and $10,000 (roughly Rs. 9.3 lakh) in other tokens via Noble. According to Initia, most of the remaining funds transferred from the impacted escrow wallets were still present within their suspended blockchain. In their security update, Initia stated that the hacker had abused the rollup infrastructure keys to fake IBC transfers.

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The involved escrow accounts possessed assets relating to various rollups that were working inside the Initia ecosystem. IBC allows the connected blockchains to exchange data and transfer assets using the available communication channels. Though the team found that there was usage of the infrastructure keys to carry out the attack, it has not provided any information on how those credentials were compromised.

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Security company CertiK noted that it had discovered around $636,000 (roughly Rs. 5.9 crore) in unusual outflows through 16 IBC transactions from Initia addresses to the Noble network. This sum is larger than Initia's initial assessment of about $615,000 (roughly Rs. 5.7 crore). Neither of these statements confirms the final sum of unrecoverable funds, as the investigation is still ongoing. Initia said that it was cooperating with cybersecurity experts, validators, and crypto exchanges to assess the scale of the event.

The native token of Initia appreciated during the same time that the blockchain network faced its second security suspension. According to CoinGecko market analysis, INIT was trading at around $0.2057 (roughly Rs. 1.8), which marked a 61.31 percent rise over the previous 24 hours. The token price ranged from roughly $0.12 (roughly Rs. 11) to more than $0.23 (roughly Rs. 21) during the trading session.

There was a total trading volume of about $84.81 million (roughly Rs. 794 crore) over the period of 24 hours, and the market cap of INIT is nearly $46.37 million (roughly Rs. 434 crore). There is the circulation of around 220 million tokens of the INIT crypto currency, which witnessed an increase of 54.22 percent within a period of seven days.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Crypto hacks, Crypto security breach, Blockchain Security

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More