Injective Halted by Exploit as Validators Temporarily Jailed

Injective, a layer-1 blockchain network, suffered an exploit on August 31 that halted block production for nearly four hours. The incident occurred after researchers traced the attack into core modules of the network.

The Injective Foundation stated that the blockchain was 'upgraded, not halted,' and that its consensus, native INJ, and staked assets were never compromised. However, on-chain researcher Earthling Paddy disputed this characterization, citing a stalled block height during the incident.

Paddy credited Injective for containing the exploit and keeping staked funds safe but questioned the network's description of the attack as isolated to ecosystem applications using binary-options markets. The incident led to some validators being temporarily jailed after missing the required upgrade window, while exchanges including Coinbase and Coins.ph temporarily restricted transfers.