- Cardano faced a temporary network split but the mainnet remained secure and functional throughout.
- The incident was caused by a malformed transaction and resolved quickly by independent operators.
- No user funds were lost and the network showed strong coordination under unexpected stress.
The founder of Cardano, Charles Hoskinson, has responded to an issue after the network slowed down temporarily and rumors circulated online about a major network failure. Hoskinson released a “Myths vs Facts” update confirming the mainnet never shut down and the core protocol remained secure. The clarification came after claims of a rollback and reports of an AI-triggered transaction causing a crash.
Hoskinson urged users to rely on verified information rather than unconfirmed stories. Previous incidents prompted similar clarifications, including misinformation about the Cardano treasury fund. The earlier event stemmed from a node implementation edge case, not a protocol failure. Stake pool operators, exchanges, and engineers quickly identified and resolved the issue.
Response and Network Coordination
Cardano teams formed a joint incident squad immediately after the slowdown. The squad organized a node update to ensure the healthy chain outweighed invalid nodes. The process relied on regular Ouroboros consensus rather than centralized intervention. Intersect, a Cardano governance body, initially reported a network split caused by a poisoned transaction.
Earlier this year, Charles Hoskinson revealed Cardano users can earn NIGHT alongside ADA staking. The latest reports confirmed no centralized rollback occurred. Updates were applied independently by stake pool operators, highlighting Cardano’s decentralized nature.
The incident followed a malformed delegation transaction that exploited a software bug. Nodes running older versions rejected the transaction, creating a temporary fork. Developers coordinated an emergency response, urging operators to update software to rejoin the main chain. Recovery operations successfully restored network integrity within hours.
Malicious Activity and Investigation
Investigations indicated a premeditated attack by a disgruntled stake pool operator. The operator spent months targeting Cardano through online forums. The attack affected all users and led to a 6% drop in ADA token value. The wallet responsible for the malformed transaction was identified, and authorities are now involved. Intersect confirmed the issue may constitute a potential cyberattack. The FBI and other agencies are engaged for forensic analysis.
The individual behind the transaction apologized publicly, claiming no financial motive. They used AI-generated instructions and acknowledged causing network disruption. The majority of retail wallets were not affected since node software did the transaction safely. Trades and trade finance providers cut off deposits and withdrawals in order to be on the safe side.
System Resilience and Lessons Learned
Despite the temporary split, block production continued on both chains. Transactions remained consistent on both chains, although network integrity required intervention. The incident underscored Cardano’s capacity to coordinate multiple independent operators under unexpected stress.
Charles Hoskinson recently revealed hopes to work with the US government and BlackRock to make their Bitcoin reserve programmable. Bounty channels were not used, prompting a serious review of procedures. Intersect confirmed a full retrospective and cross-examination will follow. Teams are putting strategies to control such incidents in future.
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