Initia has not set a restoration timeline for its paused Layer 1, where $2.16 million remains temporarily immovable after an exploit that Initia said sent roughly $3.27 million to an attacker-controlled address on Nov. 9.
Initia said it would replenish the affected reserves, while its approach remains under development. The project paused its Layer 1 network on Nov. 10 while assessing the breach.
In its explanation, Initia linked the incident to compromised cloud credentials and fabricated Inter-Blockchain Communication (IBC) withdrawal requests involving five rollups. It said the transfers reached the network's IBC outbound limit and that no INIT tokens left the network. EconoTimes previously reported the project's account of the breach.
Initia said it is reconstructing affected systems outside the live network, restricting who can access them and adding blockchain checks for IBC transfers. Initia has not said when the Layer 1 will resume and said recovery requires more work than a routine restart.
