The Cardano blockchain experienced a temporary chain split on Friday after a malformed delegation transaction triggered a long-dormant software bug.
A delegation transaction that was technically valid at the protocol level caused certain nodes to process data differently, resulting in a network partition that briefly separated the chain into two competing histories.
According to an incident report released by the ecosystem organization Intersect, the error stemmed from a flaw inside an older software library used by the network.
The malfunction prompted staking pool operators to update to the newest node software to help restore consensus and rejoin the chains into a unified record.
Although the fix was quickly implemented, concerns emerged about the possibility of orphaned transactions and potential ADA double-spends that may have affected individual users.
AI-Generated Code at Center of Network Disruption
The issue was linked to a staking pool operator known as Homer J, who acknowledged creating the malformed transaction using AI-generated code.
His actions ignited debate inside the Cardano community, with some users claiming the event served as a stress test that exposed longstanding bugs, while others described it as reckless behavior that disrupted the network’s stability.
Cardano founder Charles Hoskinson rejected the idea that the event was harmless, characterizing it instead as an attack on the network.
FBI Investigating the Incident
Hoskinson confirmed that the US Federal Bureau of Investigation has been contacted and is reviewing the matter.
In a video statement, he warned that tampering with blockchain networks carries real legal consequences.
“This kicked a hornet’s nest, and in many jurisdictions, this is a felony — a very serious one. It’s tampering with and damaging a digital network. Maybe it’s shits and giggles, and they think it’s just fun and games — ‘oh, look, we kicked Charles’s toy.’”
He continued by emphasizing the broader economic risks:
“But these things impact the lives, money, and commerce of millions of people. It’s like trying to shut down an economy and conduct a cyberattack on a nation-state.”
Market Reaction Remains Muted Despite Technical Failure
Network splits typically have an immediate effect on sentiment surrounding a blockchain’s native token.
Despite the severity of Friday’s partition, ADA’s price saw only a limited decline.
The token briefly fell from about $0.44 to roughly $0.40 during the disruption.
Market analysts noted that the modest decline occurred during an already-weak period for the digital asset sector, following a historic flash crash in October that erased more than $20 billion in liquidations.
This broader downturn appeared to blunt the impact of the Cardano incident.
Some users on social media went as far as to claim that the event went largely unnoticed “because nobody uses it,” further fueling debate about network activity levels.
