The Cardano network experienced a temporary split due to a “malformed” transaction that exploited an old code bug, causing a disagreement in how nodes processed it. Staking pool operators were instructed to update their node software to resolve the issue and reconstitute the chain. Concerns arose over potential double-spends and orphaned transactions.

The exploit was caused by ADA staking pool operator Homer J, who accepted responsibility for the incident. The split sparked a debate within the Cardano community, with some viewing it as exposing critical bugs, while others, like founder Charles Hoskinson, called it an attack on the network. The FBI is now investigating the incident.

Despite the software bug causing the network partition, ADA saw only modest price declines during and after the incident. This occurred amid a broader crypto market downturn that started in October with a historic flash crash leading to significant liquidations. Some users noted that the network partition went unnoticed due to Cardano’s limited usage.

Read more at Cointelegraph: Cardano Network Hit With a Temporary Chain Split, but ADA Barely Moves