Initia halts L1 and rollups: attacker mints tokens without a cap and takes out $2.7 million

Initia’s blockchain has stopped. On October 23, 2026 at 15:41:30 UTC the project halted its layer 1 blockchain and the rollups built on top of it, after an attacker was able to create tokens without any cap through a flaw in the minting mechanism. According to co-founder Ezaan Mangalji, the attacker extracted around $2.7 million in the stablecoins AUSD and USDC and in ether before the blockchain was stopped. If you hold assets on that blockchain, the consequence is very concrete: balances sitting on it cannot be moved while it stands still.