Initia Halts L1 After $605,000 USDC Outflow; Team Cites Compromised Rollup Keys

The suspected vector here is the part that matters: keys controlling rollup infrastructure, not a flaw in the L1 itself, which puts the spotlight on the trust assumptions linking Initia's rollups to its base chain. Fabricated cross-chain transfers imply the bridge path between rollup and L1 is where the exposure sits, and that is a design question for every team running a similar architecture, not just this one. Whether the halt contains the damage and whether the initial findings hold up under fuller investigation are the open questions.