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Cardano News Update: Cardano Network Divided as Insider Incident Triggers Dispute Between Founder and Foundation

Cardano News Update: Cardano Network Divided as Insider Incident Triggers Dispute Between Founder and Foundation

Bitget-RWA2025/11/23 04:12
By:Bitget-RWA

- Cardano (ADA) faced a chain split on Nov 21, 2025, caused by a dormant code vulnerability exploited via a malicious delegation transaction. - Engineers resolved the network fragmentation swiftly, with founder Charles Hoskinson praising blockchain resilience despite temporary front-end issues. - The attack, orchestrated by a disgruntled stake pool operator, exposed risks of undetected vulnerabilities and sparked debates over Cardano's governance. - Public clashes emerged between Hoskinson and the Cardano

On November 21, 2025, Cardano (ADA) encountered a short-lived but notable chain split, caused by the exploitation of a long-standing code flaw through a deliberately malformed delegation transaction. This event led to a temporary division within the network, but engineers quickly addressed the issue, with

in his remarks after the network was restored. The disruption was the result of a calculated attack orchestrated by a dissatisfied stake pool operator (SPO) who had spent months preparing for the exploit, , who referenced discussions in the Fake Fred Discord group as part of a larger scheme to undermine the network’s credibility.

The chain split took place when updated versions of the

node software were unable to handle the malicious transaction, resulting in a fork between different node releases. Legacy nodes continued to validate blocks, allowing the network to function, though at a reduced speed. Stake pool operators acted quickly to upgrade to version 10.5.3, which restored stability to the network by the end of the day. and no blocks were lost, even though users experienced inconsistencies on the front end and slower transaction confirmations. The episode underscored the dangers posed by hidden vulnerabilities in blockchain systems, especially those that have gone unnoticed for extended periods, as this flaw had remained inactive until it was exploited.

Cardano News Update: Cardano Network Divided as Insider Incident Triggers Dispute Between Founder and Foundation image 0
The incident reignited discussions about Cardano’s governance and internal disagreements. (CF) for its approach to community oversight, leading to a dispute with CF community lead Nicolas Cerny over claims of “useful idiots” and reluctance to accept responsibility. Cerny responded by highlighting the foundation’s expanding responsibilities, including its support for DeFi and real-world applications, while Hoskinson advocated for organizational changes and new leadership at the CF. This public disagreement highlights persistent friction among Cardano’s founding organizations—IOHK, Emurgo, and the CF—regarding governance and strategic priorities, despite ongoing technical progress in the ecosystem.

The chain split also brought renewed attention to the security challenges facing decentralized networks.

helped limit the impact of the attack, but the event revealed the risk of targeted disruptions by insiders with specialized knowledge. Crypto analyst CryptoRus attributed the fork to a bug in the latest node software, noting that the network’s continuity was preserved by older nodes. At the same time, the attacker’s detailed planning—apparently informed by familiarity with IOHK’s processes—has led to calls for stronger security measures and greater community awareness.

As Cardano moves past the incident, the event stands as a warning for other blockchain initiatives.

underscores the ongoing challenge of sustaining confidence in decentralized platforms. With priced at $0.458 as of November 22, the community and investors are closely monitoring future governance changes and technical improvements within Cardano.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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