Cardano found itself at the center of unexpected turmoil this week after a crafted transaction triggered a rare network split — disrupting exchanges, confusing block explorers, and prompting federal attention. The issue surfaced on Nov. 21, when a developer exploited a long-known bug in the system, unintentionally causing two versions of the blockchain to form.
The problem began with a malformed delegation transaction that slipped through validation checks on newer Cardano node software. Older nodes, however, rejected the same transaction, causing the network to fracture into two competing ledger states. This mismatch immediately sparked chaos across the ecosystem, breaking consistency in transaction history and creating confusion for wallets, apps, and exchanges.
According to Cardano’s engineering teams, emergency patches were rolled out within three hours. By the following day, the network naturally converged back into a unified chain as blocks synced and node operators updated their systems. But during the fork, the impact was visible everywhere: block explorers showed conflicting information, and some DeFi apps unintentionally processed activity on the wrong side of the chain.
Major exchanges including Coinbase and Upbit moved quickly to protect users, pausing ADA deposits and withdrawals while monitoring network stability. Transaction confirmation times spiked, and some transfers failed outright as nodes struggled to reconcile the split history.
The situation intensified when the developer behind the crafted transaction publicly acknowledged their role. Cardano founder Charles Hoskinson said the event resembled a staged attack and confirmed that federal authorities were alerted. The governance group Intersect later stated that law enforcement was notified because the developer’s transaction was intentionally designed to exploit a known vulnerability first reported in 2022.
The fallout didn’t end there. An engineer at Input Output Global (IOG), one of Cardano’s core development teams, resigned shortly after the incident, expressing concern that standard engineering work could now carry legal risks.
Marketwise, ADA reacted quickly to the disruption, dipping in value before recovering part of its losses as stability returned to the network.
The incident has sparked debate across the industry over developer responsibility, disclosure practices, and how blockchain networks should handle known vulnerabilities — especially when a single transaction can split an entire ecosystem in two.
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