Ontology and Injective halt block production; Injective recovers after suspected $4.9 million exploit

  • Injective Foundation said the chain was upgraded not halted after an exploit.
  • Block production stalled nearly four hours; about $4.9 million bridged to Ethereum.
  • Researcher disputed ecosystem-only claim as emergency release patched core modules.

Layer-1 networks Ontology and Injective successively interrupted block production over separate security incidents. Ontology temporarily suspended its mainnet after confirming malicious activity and said user assets were unaffected. Injective produced no new blocks for nearly four hours during an emergency response to a binary-options exploit that researchers estimate moved about $4.9 million to Ethereum, where the funds remained unmoved in an attacker-linked wallet. The Injective Foundation said the chain was “upgraded, not halted,” that consensus, native INJ, and staked assets were never compromised, and that the attack hit a small number of ecosystem applications; CEO Eric Chen added that users were not affected and that the team was assisting recovery. On-chain researcher Earthling Paddy credited containment of the exploit and protection of staked funds but challenged both characterizations, arguing the attack used messages from Injective’s native exchange and insurance modules and that the emergency v1.20.3-safeharbor.1 release patched core protocol code by adding an insurance-fund denomination check and disabling binary-options settlement on mainnet. Ledger data show block 181027005 at 16:09:59 UTC on Aug. 31 before production stalled, with one earlier block taking about 37 minutes; QuickNode also reported a stalled height. Some validators were temporarily jailed for missing the upgrade window, while Coinbase, Coins.ph, and earlier South Korean venues including Upbit and Bithumb restricted or reviewed INJ transfers. Injective has not published a full postmortem or disclosed final loss allocation, and has said the attack vector is contained with stronger invariants and monitoring planned.

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