Stablecoin issuer Agora freezes account that had already moved its tokens

Agora, the company behind the AUSD stablecoin, says it will freeze AUSD held by addresses tied to the attack on the Initia blockchain, but an account its token contract froze on Ethereum had already moved out the 1.4 million AUSD it received [1][2][3][4]. AUSD is a dollar stablecoin issued by Agora. As the issuer, Agora can freeze an account, which blocks that account from moving the token.

"Agora has no smart contracts deployed on Initia," the company said on X at 12:57 p.m. ET. It said its security team "will freeze funds related to hacker addresses that hold AUSD on chains where AUSD/Agora smart contracts are deployed" [1].

On-chain records show the AUSD contract on Ethereum froze one account at 12:31 p.m. ET, before Agora's post [2]. The account received 1.4 million AUSD at 11:01 a.m. ET [3]. It moved all of it out by 11:03 a.m. ET, before the freeze [4]. Le Coin's own on-chain reading at 1:28 p.m. ET, about an hour after the freeze, showed the account's AUSD balance at zero [5].

The Defiant reported that the account was linked to the Initia exploit [7]. Agora has not named the account in its own statement.

Initia halted its main blockchain and the networks built on it at 11:41 a.m. ET, citing a security incident [8]. Zon, who describes himself on X as an Initia co-founder, said a bug let an attacker create extra tokens on the chain and move about $2.7 million off it [9]. In a reply on X at 1:17 p.m. ET, Agora said the AUSD smart contract is not deployed on Initia and "no AUSD was minted on Initia," and that "a separate, third-party product not operated by Agora that uses AUSD on Ethereum was impacted" [10]. Le Coin's check of Initia's public node at 1:29 p.m. ET showed the latest block was still number 23365925, stamped 11:41:30 a.m. ET, almost two hours earlier [6].

Sources

1. Agora (@withAUSD), post on X, Oct. 23, 2026, 12:57 p.m. ET, https://x.com/withAUSD/status/2113676134676406456, accessed Oct. 23, 2026, 1:21 p.m. ET.
2. Etherscan, AUSD contract (0x00000000eFE302BEAA2b3e6e1b18d08D69a9012a) AccountFrozen transaction, block 26256539, 12:31:59 p.m. ET, https://etherscan.io/tx/0x9df56874a61efc7c84aecc9263a384578d70ec28734990cb74febc3003b794db, accessed Oct. 23, 2026, 1:28 p.m. ET.
3. Etherscan, transfer of 1,400,000 AUSD into account 0xdd922c841d85e12dac2dc2eef5a5e29cfff6edfa, block 26256091, 11:01:59 a.m. ET, https://etherscan.io/tx/0x034c1076a08091b3221ef1e7bbcfb47dfeda93a6e460888f2d1bc124be17f3b6, accessed Oct. 23, 2026, 1:28 p.m. ET.
4. Etherscan, transfer of 1,400,000 AUSD out of the same account, block 26256098, 11:03:23 a.m. ET, https://etherscan.io/tx/0xeb5e85e76f00a7a84dfe4d2d6aab146a769785b3d80307c67dde14c79f36c5ae, accessed Oct. 23, 2026, 1:28 p.m. ET.
5. Le Coin on-chain reading of the account's AUSD balance at Ethereum block 26256821 via a public Ethereum node, https://etherscan.io/address/0xdd922c841d85e12dac2dc2eef5a5e29cfff6edfa, accessed Oct. 23, 2026, 1:28 p.m. ET.
6. Initia public RPC endpoint, node status, https://rpc.initia.xyz/status, accessed Oct. 23, 2026, 1:29 p.m. ET.
7. The Defiant, "Agora Freezes AUSD Account Linked to Initia Exploit," Oct. 23, 2026, 1:08 p.m. ET, https://thedefiant.io/news/hacks/agora-freezes-ausd-account-linked-to-initia-exploit, accessed Oct. 23, 2026, 1:21 p.m. ET.
8. Initia (@initia), statement on X, Oct. 23, 2026, 12:00 p.m. ET, https://x.com/initia/status/2113661738625155217, accessed Oct. 23, 2026, 12:47 p.m. ET.
9. Zon (@ItsAlwaysZonny), post on X, Oct. 23, 2026, 12:22 p.m. ET, https://x.com/ItsAlwaysZonny/status/2113667290059190466, accessed Oct. 23, 2026, 12:47 p.m. ET.
10. Agora (@withAUSD), reply on X, Oct. 23, 2026, 1:17 p.m. ET, https://x.com/withAUSD/status/2113681155585368432, accessed Oct. 23, 2026, 1:50 p.m. ET.

Holding the Corner.

Not financial advice.