Cardano Chain Splits After Exploit, Exchanges Suspend ADA
Cardano’s blockchain experienced a network split on Nov. 21 after a crafted delegation transaction exploited a software vulnerability first reported in 2022. The malformed transaction was accepted by updated node software but rejected by older nodes, creating divergent ledger states. Cardano core teams deployed an emergency patch within three hours, restoring consensus across the network the following day. During the disruption, major exchanges including Coinbase and Upbit suspended ADA deposits and withdrawals, and transaction confirmation times spiked amid inconsistent block data. Founder Charles Hoskinson likened the incident to a planned attack, and federal authorities opened an investigation after the responsible developer confessed and resigned from Input Output Global. The ADA token slumped sharply on the news before partially recovering as network operations normalized. The episode underscores ongoing security and governance challenges within blockchain ecosystems.
Bearish
Chain splits typically trigger sharp volatility and erode market confidence. In this case, ADA trading halted on major exchanges and network instability spiked, leading to a steep price drop before partial recovery. Similar events—such as Solana outages and Ethereum hard forks—have produced short-term sell-offs followed by normalization once stability returns. Traders often react by reducing exposure during uncertainty, driving bearish pressure in the near term. However, swift patches and restored consensus can limit longer-term damage, suggesting stabilization if no further exploits emerge.