Zano Exploit Leads to $200M in Illicit Tokens and Blockchain Rewind
- An exploit created approximately 18.4 million ZANO tokens, valued at over $200 million.
- Zano identified suspicious activity across 117,941 outputs and 65,301 transactions.
- The flaw was introduced with Hard Fork 6 on August 29, allowing unauthorized coin creation.
- A blockchain rewind to block number 3,833,000 was executed to restore affected balances.
- Funding for recovery will come from the development fund and team members’ personal contributions.
The Zano team discovered a vulnerability that allowed an attacker to create millions of unauthorized tokens by exploiting a missing verification in their system’s transaction proofs. This issue went unnoticed for nearly a month due to the network’s privacy features that obscured transaction details.
To resolve this, Zano executed a blockchain rewind and disabled the problematic Gateway Addresses feature while ensuring that affected balances are restored without altering the overall token supply or emission schedule.(Source)
