The Cardano blockchain system experienced a significant disruption following a premeditated attack orchestrated by a disgruntled stake pool operator (SPO), which impacted all users on the network.
The incident, detailed by Cardano co-founder Charles Hoskinson, revealed that the attacker had spent months actively seeking methods to harm both the brand and reputation of IOG by targeting Hoskinson’s personal staking pool.
This led to a network-wide breakdown that affected block rewards and decentralized finance (DeFi) applications.
According to Charles Hoskinson’s message on X, the attack caused SPOs to lose block rewards, with potential double spends impacting transactions. Hoskinson warned that full recovery would take weeks, with lasting damage to Cardano’s brand and reputation.
The attack exploited a vulnerability stemming from a malformed delegation transaction. This caused a chain split where nodes accepted conflicting data, temporarily fracturing the network until an emergency patch was deployed.
Attack Confession Reveals AI-Driven Error
Hours after the incident, an X user who identified themselves as “Homer J.” took responsibility for endangering the network. In a detailed post, Homer admitted his actions began as a personal challenge to replicate a known bad transaction.
He followed AI-generated instructions to block traffic on his Linux server, mistakenly executing the command without prior testing on the testnet. This error froze block explorers, effectively stalling the network.
“I felt awful as soon as I realized the scale of what I caused. I am sorry, Cardano community,” Homer wrote on X, emphasizing that he had no malicious intent or financial gain.
He denied any market manipulation or short selling and took full responsibility for the negligence that caused widespread network disruption.
Community Warnings Highlight Network Fragility
Crypto commentator CryptoKrum responded on X, urging the community not to demonize the individual but to recognize the vulnerability in Cardano’s network design. “You are not a bad human being. Stop that nonsense. What’s really bad is the fragile nature of Cardano, if it can be broken this easily,” he tweeted, raising concerns about what more sophisticated adversaries could accomplish.
The attack exploited a software bug that allowed certain nodes to validate malformed transactions, leading to a split until node operators updated their software.
Authorities, including the FBI, have been contacted given the nature of the cyberattack, underscoring the severity of the breach.