The Cardano network experienced a major technical issue on Friday. A faulty delegation process caused the network to split into two different ledger structures. This split was brief, but its impact was significant. The ADA price dropped by as much as 16%, and major exchanges temporarily halted ADA transactions.
The transaction that caused the chain split was prepared using AI-generated instructions. Newer node versions validated the transaction, while older versions rejected it. This incompatibility forced block producers to generate transactions on two different chains. A report published by Intersect revealed that the error was caused by a library bug that had gone unnoticed for years.
After the issue began, wallet services, block explorers, and some DeFi applications were disrupted. Transactions were either slowed or not processed at all. Coinbase, Upbit, and Kraken halted ADA deposits and withdrawals. Coinbase's outage lasted approximately 14 hours. User funds were not lost, but the risk of double-spending and orphan blocks created a cautious atmosphere in the ecosystem. The ADA price fell to $0.41 following the news. The token has lost more than 30% of its value in the last two weeks. Investors are currently focused on statements from both the technical team and the investigating authorities.
Developer's confession and FBI process
A few hours after the incident, an X-user named "Homer J" claimed responsibility. The user claimed to have created the erroneous transaction while testing it on his own system. He stated that he did not correctly understand the AI's commands. He explained that his server automatically blocked network traffic, causing the transaction to be sent incorrectly. He added that he had no malicious intent, acted alone, and did not seek financial gain.
However, Cardano founder Charles Hoskinson rejected this explanation. He described the incident as a "personal and deliberate attack." He stated that the FBI had been notified. Intersect's forensic analysis also indicated that the incident may be related to someone from Cardano's former Incentivized Testnet era.
The IOG, Cardano Foundation, EMURGO, and Intersect teams prepared an urgent patch within three hours and notified the staking pool operators of their updates. The network reconverged onto a single chain on November 22nd. ADA transactions gradually returned to normal.
These developments have kept the Cardano community on both technical and legal alert. The chain split tested the network's resilience, but the debate continues.
