Bitquery traced failed USDC withdrawals to the October 23 hack; a later reserve check that day showed about $24,000.
USDC withdrawal attempts on Initia failed after an attacker depleted the reserves needed to cash out tokens held on the blockchain network, according to Bitquery's investigation of the October 23 exploit.
The Noble blockchain held the USDC reserve backing representations of the stablecoin on Initia. Bitquery found that this reserve fell from about $1 million before the cash-outs to an intraday low of $63 at 15:37 UTC on October 23. It reported roughly $24,000 at its later 18:52 UTC check that day.
The firm counted 55 failed ordinary USDC withdrawal attempts before the halt, most from one bot repeatedly submitting the same balance. Larger withdrawal requests from the attacker also failed as the reserve ran short.
@initia said its L1 and rollups halted at 15:41:30 UTC on October 23. Co-founder @ItsAlwaysZonny initially estimated that about $3 million had been bridged out before the pause.
Bitquery's estimate was about $3 million in real assets paid from bridge reserves, distinct from the roughly $7 million face value it assigned to unauthorized balances.
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In the mechanism Bitquery describes, legitimate tokens represented on Initia are backed by assets held elsewhere. Returning those representations requires the relevant reserve to release assets.
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