Initia bridge reserve fell to 63 dollars following October exploit

Failed Circle Internet Group USDC withdrawals on the Initia blockchain network occurred after an attacker drained the underlying bridge reserves on October 23, 2026. CryptoSlate reported that blockchain analytics firm Bitquery investigated the security incident after user cash-out attempts were rejected by the system. [1][3]

The reserve backing the synthetic token representations on Initia was held on the Noble blockchain network, according to CryptoSlate. Bitquery noted that the backing account held approximately 1 million dollars prior to the security breach on October 23, 2026. [1]

The exploit caused the Noble bridge balance to fall sharply throughout the day. CryptoSlate reported that Bitquery observed the reserve balance drop to about 24,000 dollars during a subsequent check, before declining further to 63 dollars. [1]

USDC is a United States dollar pegged stablecoin managed by Circle Internet Group. Following the liquidity loss, the Initia project team outlined software patch details and stated that ongoing technical recovery efforts were underway to fix the bridge infrastructure. [1][3]