Cardano Network Recovers After Malformed Transaction Split
On November 20, the Cardano network returned to normal after a crafted malformed delegation transaction exploited a serialization bug. The incident caused a rare chain split.
Intersect, the Cardano network support organization, traced the issue to a cryptographic library flaw dating back to a 2022 Preview testnet. When the malformed transaction hit mainnet, it split the ledger into two parallel chains.
Engineers released a hotfix and upgraded nodes to version 10.5.3 overnight to converge the chains. No user funds were compromised.
The wallet behind the malformed transaction belongs to a former testnet participant. The FBI has opened an investigation. Cardano founder Charles Hoskinson confirmed the network’s resilience. The user “Homer J” publicly apologized for triggering the split.
Full resynchronization is underway as stakeholders monitor stability.
Neutral
The Cardano network incident had a limited impact on market stability. Although the chain split briefly raised concerns, the swift hotfix and seamless node upgrades prevented any loss of funds. This prompt response reinforces network resilience and maintains trader confidence. Historically, blockchain splits can cause short-lived volatility, but the absence of user losses and clear communication from developers and regulators mitigates negative sentiment. In the short term, ADA trading may see minor fluctuations due to uncertainty, but the long-term fundamentals remain unchanged. Overall, this news is neutral for market sentiment, as it highlights Cardano’s robustness without altering its growth trajectory.