Pirate Chain Transaction Validation Vulnerability: $10.75M Reported Loss
A transaction validation vulnerability in Pirate Chain source code allowed the unauthorized creation of approximately 39.8 million ARRR, increasing the total supply by about 20%.
- Reported loss
- $ 10,746,000
- Attack category
- Transaction Validation Vulnerability
Incident Overview
The newly minted funds were transferred into the Sapling shielded pool. NonKYC identified suspicious deposits, restricted the associated accounts, and blocked withdrawals. The exploit combined two validation failures: bypassing the issuance check and incorrect interpretation of the output scripts. dPoW operators suspended notarizations as a precaution, and exchanges/pools were asked to pause operations while a recovery plan is developed.
Sources & References
This record presents information attributed to the linked sources. Incident dates describe the original event, not a new report. Reported loss figures reflect the source record and are not current market valuations.