⏱ 2 min read
A flaw in a new integration feature let unauthorized ZANO and fUSD circulate; the rollback wipes about a month of transactions and relies on network-wide adoption.
Zano has restarted its blockchain at block 3,833,000—immediately before the activation of Hard Fork 6—after a vulnerability in its Gateway Addresses feature allowed unauthorized ZANO and Freedom Dollar (fUSD) to enter circulation, according to the project’s core team.
The restart rolls back approximately a month of chain history. Zano said participating nodes, miners, stakers, exchanges and other services must adopt the update for the recovery to take hold. The rollback invalidates legitimate transactions recorded during that window along with the unauthorized tokens, and transactions made during that period will no longer appear on the recovered chain.
The change cannot unwind payments already settled on other blockchains. The team said it is working to account for any losses and will publish a reimbursement and claims process.
“Doing nothing meant unauthorized ZANO and fUSD in circulation without limit, diluting every holder and breaking the most basic promise a currency makes: a fixed supply,” said Zano’s head of marketing and growth, Quinten van Welzen.
Zano has not released a post‑mortem. It said the issue originated in Gateway Addresses, a feature built to simplify integrations by letting bridges, exchanges and payment services manage funds via a single account‑style balance. Prior to this change, Zano’s wallets followed a UTXO model, where funds are held as separate outputs rather than a single balance—requiring services to scan, track and select outputs to process deposits and withdrawals.
What to watch next
Two near‑term milestones will shape outcomes: whether major exchanges and services adopt the restarted chain, and how Zano structures its reimbursement and claims process. A technical post‑mortem and a clear ledger of affected balances would also help quantify the impact on ZANO and fUSD.
This content is for informational purposes only and does not constitute financial advice.
🧠 HafidWatch Take
Restoring supply integrity by rolling back a month of transactions addresses the immediate risk but leaves open questions about the true scale of unauthorized tokens introduced. Confidence depends on clear evidence showing the precise changes in issuer balances and widespread acceptance of the restarted chain by exchanges and services. A detailed post-mortem and transparent handling of reimbursements will be essential to rebuild trust and quantify the incident’s impact.
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