Initia's USDC bridge reserve fell to $63 as withdrawals failed
Bitquery data tied failed exits on Initia to a drained reserve backing user balances, while the project says it has outlined a patch and is working on recovery.
Advertising disclosure: we may earn a commission when you join an operator via links on this page, at no cost to you. This never dictates our ratings. How we make money
Key takeaways
- Initia's USDC bridge reserve reportedly dropped to just $63 after a hack.
- Bitquery linked failed withdrawals to the depleted backing for Initia balances.
- The project has outlined a patch and says recovery work is ongoing.
- The source gives no total loss figure, so the scale of the damage remains unclear.
After a hack, the reserve behind Initia's USDC bridge fell to $63, and users who tried to withdraw watched their exits fail. That comes from Bitquery, which linked the failed withdrawals to the drained backing behind USDC balances on Initia.
What we know
Not much, so far. Bitquery says the reserve that backs USDC on Initia was nearly empty. Here's what that does in practice: a bridge can't honor withdrawals when there's nothing left to pay out. Balances may still display on the Initia side, but they're no longer fully backed by real USDC.
Initia has outlined a patch and says recovery work is ongoing. The source material doesn't say how much was taken, how the attacker got in, or when users might see funds again. I won't guess at any of that.
Why it matters
Bridges attract attackers because they pool large amounts of assets behind a single set of contracts. Hold bridged USDC on any chain, and the token is only as good as the reserve behind it. A $63 reserve set against user balances is the worst case. The receipt exists. The money doesn't.
If you're on Initia, keep an eye on the project's official channels for the recovery plan, and be wary of anyone offering to help you get your funds back. Those scams tend to show up fast after a hack. The open question is whether the patch comes with a plan to make depositors whole, or only a plan to stop further losses.
Source: CryptoSlate
Top Crypto Casinos Right Now
🇹🇷 Showing sites that accept players from Turkey Change country
Advertising disclosure: we may earn a commission when you join an operator via links on this page, at no cost to you. This never dictates our ratings. How we make money
More info Less info
Why we chose it: A US-facing book that pays a premium for crypto deposits: 125% against 100% for cash, with fee-free deposits across five coins.
- Payout time
- Within 24 hours (crypto)
- KYC
- Required
Restricted countries: Australia, Afghanistan, Bulgaria, Central African Republic, Congo - Brazzaville, Eritrea, France, Guinea-Bissau and 16 more.
More info Less info
Why we chose it: Phemex is a derivatives-first venue for Europe, Asia and Latin America. Good engine, mid-size liquidity, and a blocklist that grew in 2025.
- Online since
- 2019
- Licence
- Seychelles
- KYC
- Required
Restricted countries: United Arab Emirates, Afghanistan, Australia, Belgium, Bermuda, Belarus, Ontario (Canada), China and 18 more.
More info Less info
Why we chose it: BetNow's casino floor with the biggest match bonus we list. The 200% headline deserves a careful read of the code terms behind it.
- Payout time
- Within 24 hours (crypto)
- KYC
- Required
Restricted countries: Australia, Afghanistan, Bulgaria, Central African Republic, Congo - Brazzaville, Eritrea, France, Guinea-Bissau and 16 more.
Daniel Okoro
Daniel tracks crypto regulation and policy across the US, EU and Asia, with a decade in financial journalism.
Related News
Polkadot's faster exits leave less time to respond to wallet breaches
Drift Hack Wallet Sends $61M in ETH Through Tornado Cash
Ledger Buyers in Southeast Asia Report Missing Crypto After Reseller Purchase
