Attack On Cardano Founder Leads To Network Halt, What Really Happened?
Overview
Cardano experienced significant disruption due to a corrupted transaction aimed at the personal stake pool of its founder, Charles Hoskinson. This incident not only caused a network split for several hours but also highlighted vulnerabilities within the Cardano ecosystem, leading to a heated debate over the motives behind the attack.
What Happened
On November 21, 2025, a stake pool operator conducted a transaction that was meant as a ‘test.’ However, this quickly escalated into a major issue when the operator followed unverified AI-generated instructions, resulting in the submission of a malformed transaction. This transaction exploited a bug in a cryptographic library from 2022, causing newer nodes to misinterpret it while older nodes rejected it. The consequence was a chain split that disrupted block production, impacting validators, decentralized finance (DeFi) protocols, and everyday users for several hours.
The operator later acknowledged that his actions stemmed from poor judgment and described the situation as a personal challenge that he approached recklessly. He claimed there were no financial motives, no collaborators, and no intent to specifically target Hoskinson. Despite this, he expressed regret for the disruptions caused to stake pool operators and developers, many of whom lost block rewards and faced inconsistent states in decentralized applications. Fortunately, user funds remained safe throughout the ordeal.
The Response from Charles Hoskinson
In contrast to the operator’s claims, Charles Hoskinson asserted that the incident was not an accident. He pointed out that the individual responsible had been involved in online communities known for their antagonism toward Cardano and its leadership. Hoskinson alleged that the attacker had been plotting to disrupt the project for months, with his personal stake pool as the direct target. This, in his view, indicated that the act was intentional rather than a mere experiment.
He emphasized the widespread impact of the disruption, which affected all users on the network, caused stake pool operators to miss earnings, stalled parts of the DeFi ecosystem, and forced Cardano developers into rapid emergency fixes. Hoskinson also mentioned that law enforcement had become involved, framing the incident as a criminal matter. He suggested that the public apology from the operator was only made after community investigators connected him to the incident and federal involvement became apparent.
The community found itself divided between two narratives: one portraying the situation as a case of reckless experimentation and the other as a calculated act of sabotage. Regardless of intent, the incident underscored how a single malformed transaction could destabilize the entire ecosystem and necessitate a crisis response.
Impact on the crypto market
- The incident highlighted vulnerabilities in the Cardano network, prompting discussions about security measures.
- Stake pool operators faced financial losses due to the disruption, impacting their operations and confidence in the network.
- The event raised awareness of the potential risks associated with unverified transactions and AI-generated instructions.
- Community divisions emerged, which may affect future collaborations and the overall perception of the Cardano project.
- The involvement of law enforcement suggests that similar incidents may lead to greater scrutiny and regulation within the crypto space.
Updated: 11/24/2025, 5:22:29 PM
