Initia said its layer-1 network and rollups were halted at 15:41 UTC on Friday after a security incident, as Upbit paused INIT deposits and withdrawals.
Key Facts
Initia said its layer-1 network and rollups were halted at 15:41:30 UTC on Friday due to a security incident, and that it is working with security teams, validators and exchanges to establish the scope of any impact.
South Korean exchange Upbit temporarily suspended INIT deposits and withdrawals, citing circumstances indicating a security incident, and warned that INIT's price volatility may increase.
Stablecoin issuer Agora said its AUSD token does not exist on Initia and that no AUSD was minted there, adding that a separate third-party product using AUSD on Ethereum was affected.
Initia (INIT) has halted its layer-1 blockchain and the rollups built on it after a security incident, the project said on Friday, as South Korean exchange Upbit suspended INIT deposits and withdrawals.
The halt stops activity across Initia's network and its rollups while the team investigates. As of 18:50 UTC, the project had not said what happened or whether funds were lost.
"As of Oct 23, 2026, 3:41:30 PM UTC, the Initia L1 and Rollups have been halted due to a security incident," Initia wrote on X less than 20 minutes later. "Our team is actively investigating the situation and working to establish the full scope of any impact with security teams, validators, and exchanges."
Upbit Suspends INIT Deposits and Withdrawals
Upbit temporarily suspended INIT deposits and withdrawals due to circumstances indicating a security incident, as a user-protection measure, according to a Korean-language notice posted at 15:57 UTC. It said the suspension will remain in place until deposit and withdrawal stability is confirmed and that it will announce when services resume.
In a separate notice, the centralized exchange warned users that INIT's price volatility may increase, saying circumstances suspected to be a security problem on the Initia chain had been confirmed.
Initia urged users to "remain cautious of unofficial links, messages, or claims circulating during this time" and said it would share verified information through official channels.
Agora Says AUSD Was Not Minted on Initia
Agora, the issuer of the AUSD stablecoin, said it has no smart contracts on Initia. "The AUSD smart contract is not deployed on Initia and no AUSD was minted on Initia," the company wrote on X, adding that a separate third-party product not operated by Agora that uses AUSD on Ethereum was affected.
Agora said it would freeze funds tied to hacker addresses holding AUSD on chains where its contracts are deployed, and later said AUSD "is fully backed" and its operations continue as normal.
Earlier this week, a separate Cysic bridge exploit led to the unauthorized minting of 10 million CYS tokens. Binance added INIT to its Launchpool in April 2025.
INIT traded around $0.150 as of 18:51 UTC, up about 15% over 24 hours, according to CoinMarketCap data.
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