Cardano’s Chain Split Chaos: Accidental Bug or Malicious Attack Sparks FBI Probe
A Major Glitch Hits Cardano: What Really Happened?
The Cardano network, a prominent player in the blockchain space, was recently thrown into turmoil after a single “malformed” transaction caused a significant technical failure. On November 21, this faulty transaction exploited a vulnerability in the core software, leading to a divergence in the blockchain’s history. This event effectively created a Cardano’s
According to a technical report from Cardano Intersect, the root cause was a previously undiscovered flaw in a core software library. A specific “deserialization hash error” that emerged in 2022 allowed a transaction with an excessively large hash to bypass initial validation checks when it should have been rejected. This vulnerability remained dormant until it was triggered, causing the network-wide disruption.
While the blockchain did not come to a complete halt, the incident resulted in a significant delay between block productions. The development team acted swiftly, releasing an emergency update to patch the vulnerability. Crucially, they have assured the community that all user funds remain safe and were unaffected by the split.
Conflicting Narratives Emerge: A Curious Tester or a Disgruntled Attacker?
The story took a dramatic turn when a staking pool operator (SPO) known as Homer J came forward to claim responsibility. In a public statement, he explained that his actions were born out of curiosity, not malice. He described it as a personal challenge to see if he could reproduce a previously failed transaction, even admitting to consulting AI for assistance.
“Sorry (I know the word isn’t enough given the impact of my actions) Cardano folks, it was me who endangered the network with my careless action yesterday evening. It started off as a ‘let’s see if I can reproduce the bad transaction’ personal challenge and then I was dumb enough… I didn’t sell any ADA coins before my ‘production testing,’ didn’t short… didn’t work with anyone on this… I have much to lose from my actions. Sorry, Cardano community, I truly regret it.”
However, Cardano co-founder Charles Hoskinson presented a starkly different version of events. He vehemently dismissed the idea of an innocent mistake, labeling the incident a “premeditated attack” by a disgruntled SPO who had allegedly spent months plotting ways to damage the reputation of Input Output Global (IOG), Cardano’s development arm.
“There was a premeditated attack from a disgruntled SPO who spent months… 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… Validators are losing block rewards. Double spending is possible. DeFi disruptions. It will take weeks to fix this chaos.”
FBI Involvement Escalates the Situation
The drama intensified when Hoskinson revealed that the incident had attracted the attention of federal law enforcement. In a video address, he stated that the FBI had contacted him for more information, framing the network disruption not as a simple bug test but as a serious crime.
“The situation stirred up a hornet’s nest,” Hoskinson explained, emphasizing that interfering with a digital network is a criminal offense in many jurisdictions. He suggested the perpetrator only apologized after becoming aware of the potential for a criminal investigation. “Perhaps [those involved] thought it was just fun and games: ‘Oh, look, we broke Charles’s toy,’” he added, highlighting the gravity of the consequences.
Market Shrugs as Community Debates
Despite the severity of the technical failure and the high-profile dispute, the price of Cardano’s native token, ADA, showed little to no reaction. Its price movement remained in line with the broader market downturn, suggesting that investors were either unconcerned or unaware of the network’s internal crisis.
This lack of market panic led to some sharp criticism from onlookers. One user commented, “No one noticed the Cardano network split because no one uses the blockchain,” a jab at the network’s perceived level of activity. This incident also resurfaced past criticisms, such as on-chain researcher ZachXBT’s description of Cardano as an “insider enrichment scheme.”
Ultimately, the event has served as an unexpected and severe stress test for the Cardano network. While the core team’s rapid response demonstrated resilience, the conflicting narratives and the involvement of the FBI have left the community with more questions than answers about the line between ethical hacking and malicious disruption.
