Initia (INIT) plunged 50.4% over the last 24 hours to trade near $0.1357 erasing an post-halt spike and reducing the asset’s circulating market capitalization to approximately $29.7 million. The sell-off occurred while Initia’s primary Layer-1 (L1) blockchain remained frozen following a $3.27 million infrastructure exploit detected on November 10, the protocol’s second multi-million-dollar security breach in under three weeks.
While the team has pledged to replenish all compromised user reserves and isolated roughly $2.16 million of stolen capital on the frozen chain, daily secondary trading volume surged to $168.8 million, more than five times its market capitalization, as off-chain exchange order books absorbed speculative volatility without an announced network restart date.
Initia Halted Its Blockchain After Unauthorized Transfers
Initia stopped its main blockchain, known as the L1, at 06:18 UTC on November 10, “in coordination with validators as a protective measure.” Validators are the computers that confirm transactions on the network. Initia said it had found unauthorized transfers from escrow accounts on the L1. Those accounts hold assets that users bridged to Initia’s rollups, the smaller networks built on top of it.
Initia’s initial disclosure estimated losses at roughly $605,000 in USDC and $10,000 in secondary tokens before the chain pause. However, a subsequent forensic update revised the total unauthorized movement to approximately $3.27 million.
How the Attacker Took $3.27 Million From Initia
The attack began on November 9, according to Initia’s later update, reported by PANews. The attacker used a leaked Google Cloud key to break into Initia’s systems and take over its GitHub and cloud accounts. From there, the attacker reached Anvil, the platform that hosts Initia’s rollups, and faked withdrawals for five rollups, which released assets held in escrow.
About $3.27 million went to an address the attacker controls, and about $2.16 million in stolen funds remains on the halted chain, where it cannot be moved. The attacker sold some of the assets on Initia’s decentralized exchange and withdrew about 597,000 USDC through the Noble network, plus 13,400 TIA and 8,000 USDC bridged from Injective. No INIT was moved out.
Initia’s Second Security Breach in Under Three Weeks
On October 23, a flaw in Initia’s MoveVM software let an attacker create balances that did not exist and bridge out about $2.7 million in crypto.news reported. No new INIT was created, and the chain stayed down until November 2.
Why INIT Spiked Before Crashing 50%
Despite on-chain operations being suspended, INIT surged roughly 61% on November 10 to trade near $0.21, according to CoinGecko metrics, as 24-hour trading volume climbed to $85 million against a $46 million market cap. No project announcement accounted for the sudden rally.
The speculative run peaked near $0.3923 before reversing sharply, with INIT shedding 50.4% over 24 hours to settle at $0.1357 on November 12, returning near its pre-halt trading range.
What INIT Holders Should Watch While Initia Stays Halted
Initia says it “will replenish all reserves affected” by the exploit but has not published how. It is rebuilding its infrastructure in an isolated environment and working with law enforcement and security partners. It has not set a restart date and says the restart will take longer than a normal one.
While the chain is down, INIT cannot move on-chain, so its price is set entirely by trading on exchanges. With little reliable information, the price can swing sharply in either direction, and INIT’s 24-hour volume of $168.8 million is more than five times its market cap. The key updates to watch are the restart date, whether the frozen $2.16 million is recovered, and any changes to deposits or withdrawals of INIT on exchanges.
Where Initia (INIT) Stands After the Exploit
INIT trades near $0.1357, down roughly 91% from its May 2025 all-time peak of $1.44. Initia’s L1 blockchain remains suspended, with no official timeline established for restoring block production.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided here is for general informational purposes only and does not constitute investment advice. Please do your own research before making any investment decisions.
