EL7.AI
CryptoMedium•26 October 2026•
4 min read

Upbit Places INIT Under Security Warning, Reviews Trading Support Through November

Key Facts

1Upbit’s warning on INIT began on October 26 at 14:00, and its review is scheduled to continue until the fourth week of November.
2The warning covers the INIT/BTC and INIT/USDT markets.
3Initia’s co-founder estimated the value of the assets minted and moved before the network was halted at about $2.7 million.
4INIT fell 14% after the exploit report, then reversed its losses and was up 14% on the day when The Block’s report was published on October 23.

Upbit placed Initia, whose ticker is INIT, in its trading-warning category effective October 26 at 14:00, saying the move aims to protect investors from potential harm caused by a security incident whose cause is unknown or which has not been addressed. The decision covers the INIT/BTC and INIT/USDT markets on the platform. The classification followed an incident that prompted the Initia project to halt its network, while deposits and withdrawals of the token had already been suspended since Saturday morning, before the announcement. DigitalToday reported, citing Upbit, that service will resume with withdrawals, with the platform to announce later when deposits will resume in accordance with its procedures. The token will remain under a trading warning during the review period, and the platform may extend the period or end trading support if the cause of the warning is not fully addressed.

Upbit’s decision came after transfers had been suspended; it did not trigger that suspension. The platform began halting deposits and withdrawals on Saturday morning, before INIT was placed in the warning category. According to DigitalToday’s report on the platform’s announcement, withdrawals will be the first service to return when operations resume. The date for resuming deposits will be announced later, after the relevant procedures are completed. This sequence means token holders will be unable to transfer INIT through the platform until Upbit announces that service has resumed. The warning covers the trading pairs against Bitcoin and USDT, while the review of trading support continues until its scheduled date in November.

The warning follows a security incident affecting the Initia network, a layer-one network that supports interconnected chains, which led to the network and its rollups being halted on Friday. Initia said it was investigating the scope of the impact with security teams, auditors and trading platforms. The Block quoted a project co-founder as saying initial findings pointed to a previously unknown flaw in the implementation of MoveVM on Cosmos SDK that allowed tokens to be minted without authorization. But he said the flaw did not apply to the native INIT token. The co-founder added that the attacker had minted assets and moved them off the network worth approximately $2.7 million, including AUSD, ETH and USDC, before the chain was halted. The incident explains Upbit’s focus on the possibility of an incident whose cause is unknown or which has not been addressed, the criterion the platform cited when announcing the warning.

Security researcher Spreek provided a separate preliminary estimate, saying the attacker had cashed out about $2.6 million and that other funds were being moved. Initia did not confirm total losses in The Block’s report, although the co-founder estimated the value of the assets moved at about $2.7 million. After the exploit report, INIT fell 14%, before reversing its losses and trading up 14% on the day at the time the report was published on October 23, according to The Block. That move occurred on the day the incident report was published and is not evidence of a price impact from the warning Upbit announced on October 26. Initia was still investigating the scope of the incident with security teams, auditors and trading platforms when the report was published, without confirming the amount of losses.

The warning period began on October 26 at 14:00 and is scheduled to continue until the fourth week of November, according to Upbit’s announcement, as reported by DigitalToday. During the review, the platform may reconsider its decision, extend the period or end trading support. Upbit said that failure to fully remove the cause of the warning could lead to trading support being ended, and that it would issue a separate notice if it decided to extend the period or end support. In the meantime, resuming deposits depends on a later announcement from the platform, while withdrawals will be the first service to return when operations resume. Initia’s investigation into the scope of the incident remains part of developments related to the assessment of the security flaw’s impact.