Initia Pledges to Replenish Reserves After $3.27 Million Exploit

Initia will replenish all reserves affected by an exploit that it says sent about $3.27 million in assets to an attacker-controlled address, while roughly $2.16 million remains temporarily immovable on the paused network.

Initia tied the Nov. 9 breach to compromised cloud access credentials. It said the attacker forged IBC withdrawal requests involving five Rollups to send assets to an address on Initia L1.

The attacker moved 13,400 TIA, 8,000 USDC.inj and 597,000 Noble USDC across chains, reaching the network’s IBC outbound limit. Initia said no INIT tokens were transferred out.

Roughly $2.16 million of the affected assets remains on the halted L1, where it cannot be moved for now. Details of how Initia will replenish the affected reserves are still being finalized.

Initia is rebuilding affected infrastructure in an isolated environment, tightening access controls and strengthening on-chain IBC verification. The team expects recovery to take longer than a standard network restart and has not announced a restoration timeline.