Cardano Network Splits: AI-Generated Transaction Triggers Vulnerability, Sparking “Attack” Claims and Market Jitters

The veteran public blockchain Cardano (ADA) experienced a rare and significant incident over the weekend. An unusually formatted, AI-generated transaction successfully exploited an existing vulnerability, causing the network to temporarily split into two distinct chains and leading to a chaotic breakdown in consensus among block producers. Cardano founder Charles Hoskinson vehemently denounced the event as a “premeditated attack.” However, a user claiming responsibility has since come forward, asserting that their actions were merely an unintentional test using an AI-generated script, devoid of malicious intent. In the wake of the news, ADA’s price plummeted over 6% in a single day.

This event, initially labeled a “potential network attack,” unfolded on November 22nd. The catalyst was a malformed transaction data packet that unexpectedly triggered a known flaw within Cardano’s core software library. This critical vulnerability caused a divergence in interpretation: newer and older versions of network nodes processed the same data differently. Consequently, a portion of the on-chain nodes began tracking a “tainted chain,” while the remaining nodes continued on the legitimate mainnet, effectively creating two parallel realities within the Cardano ecosystem.

According to an investigative report released by Intersect, Cardano’s ecosystem governance body, the problematic transaction originated from a user wallet previously involved in testnet activities. This triggered a “judgment divergence” among network nodes, where newer client versions accepted the transaction, while older versions correctly rejected it.

The failure of the validation logic to intercept this error led directly to the blockchain’s bifurcation. Some block producers began to forge blocks on what the official team termed the “poisoned chain,” while others remained committed to the original, “healthy chain.” To mitigate the crisis, the development team swiftly released an emergency patch and instructed node operators to upgrade immediately, aiming to re-synchronize with the authentic mainnet.

As a precautionary measure, major cryptocurrency exchanges and wallet service providers temporarily halted ADA deposits and withdrawals immediately following the incident. Fortunately, Intersect confirmed that the majority of retail user wallets automatically ignored the anomalous transaction, ensuring that no user funds were compromised or lost.

Founder Labels Incident a “Premeditated Attack,” Warns of Weeks-Long Recovery

Charles Hoskinson, the founder of Cardano and CEO of Input Output Global (IOG), expressed profound anger over the incident. He unequivocally characterized it as a “targeted, premeditated attack,” accusing a disgruntled stake pool operator of orchestrating the event, stating that the individual had been actively seeking methods to “harm the IOG brand and reputation.”

Hoskinson warned that the disruption’s implications were far-reaching, ranging from block producers losing rewards to DeFi protocols grappling with inconsistent states. He cautioned that a complete restoration of the network to a unified, healthy state could potentially take several weeks.

There was a premeditated attack from a disgruntled SPO who spent months in the Fake Fred discord actively looking at ways to harm the brand and reputation of IOG. He targeted my personal pool and it resulted in disruption of the entire cardano network.

Every single user was…

— Charles Hoskinson (@IOHK_Charles) November 21, 2025

Plot Twist: Self-Proclaimed Culprit Claims AI-Generated Script Was an “Accidental” Test

Amidst the official condemnation, a dramatic turn of events unfolded as a user on social media platform X, operating under the pseudonym “Homer J.,” suddenly posted a “confession,” claiming sole responsibility for the incident. Homer J. emphatically stated they acted alone, harbored no malicious intent, and did not profit from shorting ADA.

Homer J. explained that they were attempting to use AI-generated terminal commands to block external traffic and replicate the malformed transaction. Unbeknownst to them, the power of the code far exceeded their expectations. It was only when they observed the blockchain explorer completely freezing that they realized the severe magnitude of their mistake.

“I am ashamed of my carelessness,” Homer J. confessed. “I had no evil intentions, but I did jeopardize network security and cause unnecessary panic.”

Sorry (I know the word isn’t enough given the impact of my actions) Cardano folks, it was me who endangered the network with my careless action yesterday evening. It started off as a “let’s see if I can reproduce the bad transaction” personal challenge and then I was dumb enough

— Homer J (AAA) (@KpunToN00b) November 21, 2025

Market Confidence Shaken: ADA Leads Decline Among Major Cryptocurrencies

In the aftermath of the incident, ADA’s price plunged by over 6%, making it the worst-performing asset among mainstream tokens. Market analysts suggest that this event has highlighted a critical vulnerability in decentralized Proof-of-Stake (PoS) networks: a perceived lack of rapid, consistent upgrade coordination mechanisms when faced with exploits. This has, in turn, intensified short-term risk aversion among investors.