Cardano Faces Chain Split After Malformed Transaction Error

- Cardano suffered a chain split after a malformed transaction bypassed software safeguards.
- Newer nodes accepted the faulty entry while older nodes rejected it, creating two chains.
- Operators deployed patched nodes to restore a single chain and stabilize network activity.
Cardano experienced significant disruption on Friday after a malformed delegation transaction triggered a chain split that exposed a software flaw within the network. The faulty transaction passed through newer nodes but failed on older ones, creating two diverging chains. The event disrupted normal activity, pushed service providers into emergency mode, and drove a sharp drop in ADA’s price during the unfolding situation.
Intersect, Cardano’s governance organization, released a detailed incident account. The report stated that the malformed transaction validated correctly only on newer node versions. Older nodes rejected it. This validation mismatch created parallel branches that continued producing blocks independently.
Software Flaw Leads to Dual Cardano Chains
Intersect explained that a flaw in an underlying software library escaped detection. The malformed transaction was executed despite the bug. One chain absorbed the corrupted entry. The other chain advanced without it. Block activity continued on both sides, which added complexity to the response.
Cardano co-founder Charles Hoskinson addressed the incident on X. His message stated that all users experienced some level of impact. He also highlighted ADA’s decline of more than 6% following the disruption. His comments focused on the functional consequences and the urgency of the corrective steps.
The incident report said node operators began extending different branches as soon as the mismatch occurred. Development teams and service providers coordinated an emergency fix.
Operators were given direction to deploy updated node software. The fixed client was able to reconnect correctly, and centralized block production brought the chain back into equilibrium.
Intersect proved the identification of the wallet that made a malformed transaction. The account was forensically traced to a saver from the Incentivized Testnet days.
The report classified the event as a potential cyber incident involving a digital network. Intersect said relevant authorities, including the Federal Bureau of Investigation, had been contacted for further examination.
Apology Issued After Cardano Chain Split
Hours after the network divergence, an X user known as Homer J. publicly accepted responsibility. The individual described the act as an attempt to reproduce a faulty transaction for personal testing. Instructions for the attempt came from an AI model. The person added that server traffic had been blocked during the test, contributing to the flawed execution path.
The individual expressed regret after realizing the scale of the disruption. The message stated that no harmful intent existed and that no ADA was sold, shortened, or used for personal gain. The user emphasized that no partners or collaborators were involved and accepted full responsibility for the outcome.
Intersect confirmed that no funds were lost. Most retail wallets avoided problems because the relevant components processed the malformed transaction safely. The ledger’s consistency remained intact once the correct chain regained dominance.
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Hoskinson later released a video message to address user concerns. His remarks underscored that the network did not stall. Block creation continued simultaneously on both chains.
Several identical transactions appeared on each branch. He acknowledged the operational issues but noted that exchanges paused activity only as a protective measure.
Exchanges and third-party services maintained the pause until patched software was widely deployed. Restoration required operators to align nodes with the correct chain. Development teams monitored the process closely as the patch propagated.
Intersect said the ongoing cleanup would continue until all technical steps and investigative processes are complete. The organization noted that improvements to validation safeguards are already under review. The incident marked one of the most complex operational challenges in Cardano’s history and prompted renewed focus on resilience across the ecosystem.



