News linked to both this project and an event.
According to announcements from Upbit and Bithumb, both Korean cryptocurrency exchanges have designated Initia (INIT) as a trading alert asset due to unexplained or unresolved security incidents, such as hacks impacting related wallets or distributed ledgers, which could lead to user asset losses. Currently, deposit and withdrawal services for INIT on both exchanges have been suspended. Upbit stated that upon resumption, withdrawals will be prioritized, with deposit services to be announced separately.
Initia stated that on October 23 at 22:59 (UTC+8), an attacker exploited a vulnerability in the Initia MoveVM script cache to bypass security checks and forge MoveVM state, crediting themselves with WETH, iUSD, and USDC that had no actual backing. The total supply of the relevant tokens has not changed, INIT was not minted additionally, and the total supply is unaffected.
According to Zon monitoring, available information indicates that this security incident may have originated from a Day 0 vulnerability in Initia's MoveVM built on Cosmos SDK. The vulnerability allowed attackers to mint additional tokens on Initia L1, but does not affect the native token INIT. Before the blockchain was halted, the attacker had already transferred out approximately $2.7 million worth of AUSD, ETH, and USDC through additional minting and cross-chain transfers. The team is still investigating, and the subsequent impact and further details remain to be confirmed.
Initia posted on X that, as Circle will sunset USDC on Noble, USDC on Initia will migrate from Noble to Injective. Initia Labs has developed a redemption vault, so users need take no action; existing USDC.n will continue to function normally, newly transferred USDC will arrive as USDC.inj, and USDC.n transferred out will be automatically redeemed for USDC.inj via the vault and continue to be sent to the target address. Applications may gradually transition from USDC.n to USDC.inj, and users can also swap at a 1:1 ratio via Initia Wallet. After January 12, 2027, only Noble USDC held in wallets can be redeemed with Circle; by then, USDC.n on Initia will no longer be redeemable.