Cardano Network Split After Bug: FBI Investigation Launched
On November 23, 2025, the Cardano network split into two chains after a rare software bug was triggered by a staking-pool operator known as “Homer J” using an AI-generated code snippet. Although technically valid, the transaction hit a long-dormant flaw that caused some nodes to accept and others to reject it, resulting in a temporary fork. During the Cardano network split, operators upgraded nodes rapidly and reconverged the blockchain. Founder Charles Hoskinson has called the event a criminal act and notified the FBI for a full investigation. The incident led to a brief ADA price drop from $0.44 to $0.40 but did not spark a broader sell-off. This event underscores the need for rigorous code audits, especially with rising reliance on AI-generated code, and highlights evolving legal and governance frameworks in blockchain security. The network is now stable, with further audits and stress tests planned to prevent similar vulnerabilities.
Neutral
Despite the severity of the bug and temporary fork, the market reaction was muted. ADA fell from $0.44 to $0.40 but quickly recovered as node upgrades contained the issue. Similar to past blockchain incidents—such as Ethereum’s DAO fork—the swift governance response limited long-term damage. Charles Hoskinson’s decision to involve the FBI adds legal scrutiny but reinforces network integrity. In the short term, traders may see increased volatility around similar events. In the long term, enhanced security measures and transparent governance should bolster confidence. Overall, the incident is viewed as a neutral driver: it highlights risks without undermining Cardano’s fundamentals.