Initia suffers $2.73 million loss due to stale script cache
Initia experienced a loss of approximately $2.73 million due to a stale script cache issue in its MoveVM. The incident involved forged balances being released over LayerZero and CCTP before the system was halted.
A stale script cache in Initia’s MoveVM allowed for forged balances to be released over LayerZero and CCTP, leading to a significant financial loss. The incident resulted in real reserves being depleted by about $2.73 million before the system was halted to prevent further losses. The Initia Foundation has since approved funding to restore the backing that was compromised during this event.
The mechanism of the incident involved the exploitation of the stale script cache, which permitted the issuance of incorrect balance information. This vulnerability was critical in enabling the fraudulent transactions to occur, ultimately impacting the financial integrity of the platform. The halt of operations was necessary to mitigate additional losses and address the underlying issue.
While the specific blockchain is not stated, the use of LayerZero and CCTP suggests a multi-chain interaction, which could complicate tracing the flow of funds. The incident highlights the importance of maintaining up-to-date scripts and caches to prevent similar vulnerabilities in the future. The on-chain record does not provide specific addresses related to the incident.