Extraordinary Decision from a Privacy-Focused Altcoin Network: One Month’s Transaction History Deleted! Here Are the Details

The Zano team reverted the network to a pre-Hard Fork 6 state to close a vulnerability that allowed unauthorized $ZANO and fUSD mining. The privacy-focused Zano network carried out an unusual recovery operation following the discovery of an inflation flaw in the Gateway Addresses feature.

The blockchain was restarted from block 3,833,000, immediately preceding Hard Fork 6. As a result of this decision, approximately one month’s worth of on-chain transaction history was not included in the recovered chain.

According to the Zano team, the vulnerability allowed for the unauthorized creation of $ZANO and dollar-pegged fUSD. However, the network’s core consensus system, user spending keys, and privacy mechanisms in normal transactions were not affected by the attack. Node operators, miners, stakers, exchanges, and bridging services need to install the immediate update.

The recovery process excluded not only counterfeit assets but also legitimate transactions conducted during that period from the recovered chain.

The Freedom Dollar team announced that millions of dollars worth of assets were exchanged for counterfeit fUSD and that they would cover the resulting losses as a project. They requested that fUSD transactions be suspended until the network’s stable operation is confirmed.

*This is not investment advice.