Initia’s MoveVM Exploit Left Its USDC Bridge Reserve With Just $63

By Isaac • October 25, 2026 3:42 pm •

Initia’s response to a MoveVM exploit has exposed the kind of crypto risk that a token balance alone cannot show: a bridge can display assets on one side while its redeemable reserve has nearly vanished on the other.

According to a detailed report from CryptoSlate, the incident drove the network’s USDC bridge reserve down to roughly $63 as users encountered failed withdrawals. That figure is the part investors will remember, but the mechanics behind it matter even more.

Initia first told users that its layer-1 network and associated rollups had been halted on October 23 after a security incident. The team said it was working with security firms, validators, and exchanges to determine the full scope