Zano's blockchain was rolled back by approximately one month after an attacker exploited a vulnerability to mint 36.9 million unauthorized ZANO and Freedom Dollar (fUSD) tokens. The team stated the unauthorized coins were indistinguishable from legitimate ZANO, necessitating the rollback to remove the illicit supply.
The incident highlights the risks associated with blockchain vulnerabilities and the drastic measures, like a rollback, that can be necessary to maintain the integrity of a cryptocurrency's supply. Such actions can impact user trust and the perceived security of the network.
Zano announced that an attacker exploited a vulnerability in its Gateway Address feature, leading to the creation of 36.9 million unauthorized ZANO (ZANO) tokens and Freedom Dollar (fUSD) tokens. The exploit was first used on Aug. 29 to mint approximately 18.4 million ZANO, followed by another 18.4 million ZANO and fUSD on Sept. 25. The Zano team stated that these unauthorized coins were indistinguishable from legitimate ZANO, making it impossible to remove them without a blockchain rollback. Consequently, the team decided to roll back the blockchain by about a month, acknowledging potential trust implications but deeming it necessary to eliminate the illicit supply. The attacker reportedly paid a 100 ZANO fee, valued at approximately $553 at the time of publication, to initiate the exploit. Zano is working to restore affected balances using its developer fund, personal funds from team members, and committed contributions, primarily through exchanges and payment services.
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