Cardano caused a fork due to a format error in a delegated transaction, and Intersect confirmed that there were no user fund losses.

According to a report by Decrypt on November 22, the Cardano Blockchain split into two chains on Friday due to a software vulnerability triggered by a malformed delegation transaction. The transaction was validated on the new version nodes, but the old version software rejected it, leading to a network fork.

The Cardano ecosystem governance organization Intersect stated in an incident report that this “toxic” transaction exploited a vulnerability in the underlying software library, splitting the network into a “poisoned” chain containing the transaction and a “healthy” chain that does not.

Co-founder Charles Hoskinson initially claimed this was a “premeditated attack,” but later an X user, Homer J., publicly admitted responsibility, stating that he acted negligently while trying to replicate a “bad trade” and relied on AI-generated instructions. The user stated that there was no malicious intent and he did not gain any economic benefits from it.

Intersect confirms that there are no user fund losses, and most retail wallets remain unaffected. The price of ADA tokens has dropped by over 6% due to this incident.