Initia’s INIT Token Climbs 80% as Layer 1 Remains Halted After Hack

Initia’s INIT token climbed 80% over 24 hours on Nov. 10, leading crypto gainers while the project’s Layer 1 remained offline after unauthorized transfers from a custody account.

Initia paused its Layer 1 at 1:18 a.m. ET (06:18 UTC) on Nov. 10 after coordinating with validators. The project described the halt as a protective measure. Initia said its preliminary investigation found that compromised keys tied to Rollup infrastructure were used to forge Inter-Blockchain Communication (IBC) transfers.

The account held assets bridged to Initia from multiple rollups. About $605,000 in USDC moved out through Noble before the halt, and roughly $10,000 in other tokens also left the account. Initia said most of the remaining assets stayed on the halted Layer 1.

INIT reached $0.234 after moving above $0.23 during the 24-hour period. The gain came while the network was paused, with most of the custody account’s remaining assets still on Initia’s Layer 1. The transfer figures describe funds that moved and do not establish the total value of losses.