If you hold assets that depend on a shared cross-chain custody account, the practical concern is whether those funds can move without your own wallet approval once an operator key is exposed.
On November 10, 2026, Initia said that at 06:18 UTC it found unauthorized transfers from multiple Rollup cross-chain asset custody accounts on the L1 mainnet. The project coordinated with validators to pause L1 operation to limit further losses. This account comes from a report published the same day by 深潮 TechFlow, citing Initia’s statement.
A preliminary investigation indicated that an attacker is suspected of using leaked Rollup infrastructure keys to forge IBC cross-chain transfers. Before the pause, about 605,000 USDC left Initia through Noble, and about $10,000 of other tokens also left, for a combined outflow of about $615,000. Those amounts are approximate, as given in the initial report, and are not presented as a final audited loss.
Initia said most of the remaining assets transferred out of the custody accounts were still on the paused L1. The team said it was working with security organizations, validators, and exchanges to assess the scope and would publish more information later.
Pausing the network trades continued unauthorized movement for a freeze on activity that still depends on that L1. Assets already sent out through Noble were outside that pause; assets still on the halted chain remained there at the time of this report. The notice describes leaked Rollup infrastructure keys used for IBC transfers, not a compromise of an individual holder’s seed or wallet. It does not set out a recovery method or a final accounting.
Readers with assets on Initia or related rollups should treat the figures above as preliminary and follow later statements from Initia rather than assuming the pause itself returns funds or removes custody risk.
Original report, published November 10, 2026, at 15:44 (UTC+8): 深潮 TechFlow
