Cardano News Update: Chain Split Highlights Governance Challenges and AI Threats

On November 21, 2025, Cardano’s blockchain experienced a major security breach when a chain split interrupted its normal function, sparking concerns about the protocol’s durability. This disruption, caused by a malformed transaction that took advantage of a bug present since 2022, highlighted weaknesses in both the network’s governance and its technical defenses.

, that although no assets were compromised, the incident has led to increased examination of Cardano’s capacity to handle both accidental failures and deliberate attacks.

The split was initiated after a staking pool operator known as "Homer J" submitted an AI-generated transaction meant to push the network’s boundaries. This transaction slipped past regular validation protocols, resulting in two parallel chains—one accepting the invalid block, the other rejecting it. As miners began to build blocks on both sides, the network was briefly divided until a critical software patch (version 10.5.3) was quickly released to resolve the issue

. Charles Hoskinson, the creator of Cardano, , stressing the risks of double-spending and potential disruptions to DeFi platforms.

This episode highlights the dangers posed by human mistakes and unverified code in blockchain environments. Homer J confessed to deploying AI-generated code without adequate testing, describing his actions as a "personal experiment" that unintentionally put the network at risk.

in the crypto sector about AI’s increasing role in attack strategies, this incident mirrors broader trends in the industry.

Cardano’s swift resolution of the crisis, with engineers addressing the problem within a matter of hours, has been commended as evidence of the network’s technical strength. Nonetheless, some critics believe the event exposes more fundamental issues in governance. The bug from 2022 lingering in the code and insufficient patch testing have led to doubts about the project’s formal, research-based methodology.

, remarking, "if it can be compromised so easily, what other issues might be hidden?"

The value of

, Cardano’s primary token, stayed mostly steady near $0.40 during the ordeal, but the blow to its reputation may have lasting effects. In response, the project , which is designed to strengthen consensus security and guard against future splits. However, regaining confidence will demand more than just technical improvements—greater transparency in patch approval and tighter oversight of operators are now under close review.

As blockchain platforms become more intricate, the

episode stands as a warning about the complex relationship between technological progress, governance, and human fallibility. With AI’s influence growing in both development and exploitation, how the industry responds to new threats will shape its future sustainability.