- A malformed transaction exploited a bug in Cardano node software, causing the network to split into two separate chains.
- The issue arose from a mismatch in node versions, where newer versions accepted the “toxic” transaction due to a flaw in a cryptographic library, while older versions rejected it.
- Charles Hoskinson referred the incident, which he claims was a deliberate attack by a disgruntled staking pool operator, to the FBI for investigation.
The Cardano (ADA) community went through a bit of a dramatic moment on Friday, as the network suffered its first chain split since inception.
And we’re not talking about a division of ideas, but an actual chain partition thanks to a malformed transaction, which exploited a bug in the Cardano node software, causing the network to split into two different chains: one that contained the poisoned transaction, and a healthy chain without it, according to a report by Intersec.
More specifically, the issue began when a “toxic” transaction hit the network. Intersec noted that nodes running version 10.5.2 and above accepted it as valid, while older versions (10.3.1 and below) rejected it due to a flaw in an underlying cryptographic library. The mismatch is what caused the blockchain split.
While the core Cardano protocol remains robust, this edge-case vulnerability provided a vector for the disruption. The transaction was crafted specifically to trigger this bug on mainnet following its earlier discovery on the Preview network, creating a consensus disagreement between nodes that had processed the transaction and those that had not.
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A Vibe-Coded Toxic Transaction
The wallet responsible for the poisoned transaction has been identified, and apparently it belongs to a former Incentivized Testnet participant:
Forensic analysis suggests links to a participant from the Incentivized Testnet (ITN) era. As this incident constitutes a potential cyberattack on a digital network, relevant authorities, including the Federal Bureau of Investigation, are being engaged to investigate.
IntersectAnd that participant is a Cardano staking pool operator, known as “Homer J (AAA)” on X, linked to the “Fake Fred” Discord group. He acknowledged submitting the transaction, claiming it was part of a technical experiment using AI-generated code and denying any intention to disrupt the network.
But Charles Hoskinson is having none of it. He rejected the explanation of “misusing” AI-generated code, and instead described the incident as a deliberate attack to harm “the brand and reputation of IOG”. He also said the matter has been referred to the FBI, which he claims is now investigating the transaction and its origin.
There was a premeditated attack from a disgruntled SPO who spent months in the Fake Fred discord actively looking at ways to harm the brand and reputation of IOG. He targeted my personal pool and it resulted in disruption of the entire cardano network.
He apologized because the ITN pool in my video earlier linked to him and he knew a criminal investigation has already been launched.”
Charles Hoskinson, Cardano Co-Founder.Related: Index Axe Looms Over Saylor’s Strategy as Crypto Slump Threatens Billions in Passive Flows
