Cardano Network Split After Malformed Delegation Transaction Exploits Software Flaw

The Cardano blockchain forked into two chains on Friday after a malformed delegation transaction exploited a software vulnerability, Decrypt reports. Updated nodes validated the transaction while older versions rejected it, causing the split. Intersect, Cardano's ecosystem governance organization, said in its incident analysis the "toxic" transaction leveraged a flaw in the underlying software library, creating a "poisoned" chain containing the transaction and a "healthy" chain without it. Co-founder Charles Hoskinson initially called the incident a "premeditated attack," but X user Homer J. later claimed responsibility, saying the error occurred while attempting to reproduce a "bad transaction" using AI-generated instructions. Intersect confirmed no user funds were lost and most retail wallets remained unaffected, while ADA declined over 6% following the event.