Simply put
- Cardano’s blockchain experienced a split into two ledgers on Friday, triggered by a validation issue involving fraudulent transactions.
- A user, referred to as User X, took responsibility for the incident, admitting negligence while trying to replicate a transaction.
- Intersect, the governing body of the Cardano ecosystem, advised carriers to update their software and confirmed that no users lost any funds during the event.
On Friday, Cardano (ADA) saw a decline in price following an unanticipated chain split due to a bogus delegated transaction that resulted from a software flaw. This situation caused disruptions for Cardano users, leading to public apologies from individuals who claimed to be at fault.
Intersect reported that the issue started when a fraudulent transaction was accepted by a new node version, while older software rejected it.
“This exploits a bug in the underlying software library that wasn’t caught by the validation process,” Intersect explained. “As a result, the execution of this transaction led to a fork in the blockchain, dividing the network into two separate chains: one with the compromised transaction and another without it.”
There was a planned attack from a disgruntled SPO. SPO had spent months grappling with the Fake Fred feud and was actively considering ways to tarnish IOG’s brand and reputation. He targeted my personal pool, resulting in the entire Cardano network being disrupted.
— Charles Hoskinson (@IOHK_Charles) November 21, 2025
Earlier, Cardano co-founder Charles Hoskinson addressed the situation on X, labeling it a “planned attack by a disgruntled party.” He suggested that the attacker sought ways to harm the brand and reputation of Cardano developer Input/Output Global.
Hoskinson stated that all Cardano users felt the impact. In the aftermath of the incident, the price of ADA dropped more than 6%.
The incident report revealed that this discrepancy caused operators to construct blocks on different chain branches until an updated node software could be deployed. Developers and service providers organized emergency responses, urging operators to upgrade to get back on the main chain.
Intersect mentioned that the wallet linked to the fraudulent transactions had been pinpointed, but Hoskinson indicated that it could take weeks to sort everything out.
“Forensic analysis suggests a connection to participants from the Incentivized Testnet (ITN) era,” Intersect noted. “Authorities, including the FBI, are looking into the matter as it could be a cyber attack on the digital network.”
Hours after the event, User X, who went by the name Homer J., claimed responsibility for initiating the transaction that caused the split.
“Dear Cardano, my sincere apologies. I was the one who recklessly jeopardized the network with my actions last night,” they explained, claiming the attempt was a personal challenge to recreate “fraudulent transactions” using AI-generated instructions while overwhelming the server.
“I felt terrible as I realized the impact of my actions. Although I can’t undo the strain I’ve caused, I genuinely regret it. My intentions were not malicious.”
Homer asserted that they did not profit from selling or shorting ADA, did not coordinate with others, and took full responsibility for their negligence.
According to Intersect, no funds were lost and most retail wallets remained secure, processing fraudulent transactions without issues.
Cardano’s co-founder Hoskinson remarked in a video message that users faced troubles, but the network itself did not go offline.
“It’s crucial to mention that the network remained operational; block generation continued on both chains during the incident, and at least some identical transactions appeared on both chains,” Intersect added. “To maintain ledger integrity, exchanges and third-party services have temporarily suspended deposits and withdrawals as a safety measure.”
