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Cardano Blockchain Split in $15B Attack, FBI Now Investigating

Cardano Blockchain Suffers AI-Generated Code Attack Splitting $15 Billion Network and Prompting FBI Investigation

  • Cardano blockchain experienced a major attack that caused a split of its $15 billion network.
  • The incident involved code generated by an AI and was attributed to a pseudonymous developer known as Homer J.
  • Charles Hoskinson, Cardano’s founder, called the FBI, describing the event as a premeditated attack.
  • The exploited bug originated in 2022 but was only exploitable since last year.
  • After the attack, a Cardano development firm employee resigned, raising questions about the nature of the incident.

On November 21, the Cardano blockchain, valued at approximately $15 billion, faced a significant attack that split the network into two. This event was caused by a developer using AI-generated code to exploit a vulnerability in the system. The attacker, known online as Homer J and using an image of a South Park character, triggered this split, which compromises the blockchain’s function as a unified and immutable public ledger.

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The developer apologized quickly for the disruption, but Cardano‘s founder, Charles Hoskinson, described the incident as malicious and personally motivated. He stated on X that he had contacted the FBI to investigate the matter. Hoskinson claimed Homer J had extensive knowledge of the blockchain and suggested the apology came only after law enforcement involvement was imminent.

The bug exploited had been part of the blockchain’s code since 2022 but could only be leveraged starting last year, according to a post-mortem report from Intersect, a development firm involved with Cardano. Despite the rapid patching of the issue, the blockchain will require weeks to fully recover and restore its reputation, as every user was affected.

A day after the attack, a developer from IOG, the programming firm behind Cardano, resigned. The developer, known as Roman, admitted to significant errors in penetration testing but expressed surprise about legal consequences, contrasting with Hoskinson’s view of the attack as deliberate. The precise legal implications for Homer J remain unclear.

Following this disruption, many in the crypto community continued discussions on governance and security, highlighting ongoing challenges even in well-established projects.

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