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A network partition scares Cardano users
According to on-chain data, the Cardano mainnet experienced a network partition event just a day after the preview testnet encountered similar issues. The fork split the Cardano network into two separate chains, with one incident report blaming the chain partition on a “malformed delegation transaction.”
The incident report, published by Intersect, noted that the malformed delegation transaction exploited a bug in an underlying software library from 2022. While previous ledger versions have masked the bug, Intersect’s analysts say the attacker used specialized tools to trigger the bug.
“The bug caused an oversized hash in a malformed delegation transaction to pass initial validation checks when it should have been rejected,” Intersect’s report said.
Recognizing the differences, technical teams from the Cardano Foundation, Input Output and Intersect worked together to develop a hotfix for the problem. Within hours, SPOs and other node users were instructed to upgrade their nodes, increasing the weight of the healthy chain while invalidating the poisoned chain and its blocks.
 Contrary to claims, the incident report noted that Cardano did not stop and that both disparate chains caused blockages during the incident. Meanwhile, several cryptocurrency and third-party service providers have halted deposits and withdrawals as a precaution. A specialized working group is tasked with reconciling valid transactions from the poisoned chain with the main ‘healthy’ chain.
Suspect identified amid threat of legal action
Intersect’s incident report shows that the team identified the wallet responsible for the mis-formed transaction. Preliminary research linked the wallet to an Incentivized Testnet (ITN)-era participant, with the team labeling it as a potential cyberattack.
At the time of writing, the Federal Bureau of Investigation (FBI) and other relevant authorities were investigating the attack. Pseudonymous X-user Homer J has claimed responsibility for the incident, describing his actions as a personal challenge with no intention of causing harm or making profit. Meanwhile, Cardano founder Charles Hoskinson downplayed his reasons for triggering the bug. Hoskinson argued that the incident is a personal, premeditated attack by a disgruntled SPO with a long-standing animosity toward Cardano’s founder. In a series of X-posts, Hoskinson revealed that the incident targeted his personal pool and could have far-reaching consequences for the network.
Since the incident, Cardano’s price has fallen nearly 7% to $0.4095, a steep drop of more than 35% in the past 30 days. Previously, a Cardano whale lost $6.2 million in ADA during a failed stablecoin swap, putting heavy downward pressure on the beleaguered asset.
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