Initia Halts Blockchain After $615K Leaves Bridged Asset Escrows

Most assets moved from Initia's escrow accounts remained on the halted L1, leaving their status tied to the network's recovery process. Initia, a network designed for interwoven optimistic rollups, has halted its layer 1 blockchain after it detected unauthorized transfers from escrow accounts holding assets bridged to several rollups. According to the team, approximately $615,000 left the network before the shutdown, with the incident raising new concerns for a project that only recently restored operations after another exploit that cost it about $2.7 million. Initia Identifies Compromised Rollup Infrastructure Keys In a post on X last night, Initia said it was “investigating an issue affecting rollup infrastructure” and that they had been paused temporarily. “We have not identified any impact to user funds and we hope rollups will resume producing blocks soon,” the team wrote at that stage. However, today, the story changed, with the team saying it had halted L1 operations at 06:18 UTC after preliminary investigations identified unauthorized transactions from the network’s escrow accounts where assets bridged to a number of rollups were being kept. According to them, the unauthor...