Pirate Chain Faces Major Exploit, Proposes Blockchain Rollback

Pirate Chain, a privacy-focused cryptocurrency, has encountered a significant security breach that allowed an attacker to mint approximately 39.8 million ARRR tokens, representing about 20% of the coin's total supply. This vulnerability was linked to a validation flaw in the Ironwood upgrade, which was implemented on October 3, 2026. The exploit was discovered on October 14, leading to urgent measures from the development team to mitigate the damage.

In response to the incident, users have been advised to refrain from moving their funds while the team works on a solution. The newly minted tokens were quickly transferred into the Sapling shielded pool, complicating efforts to trace their movement due to the inherent privacy features of the network. One exchange, NonKYC, acted swiftly to restrict deposits related to the exploit and blocked withdrawals to prevent further risk.

The proposed remedy involves a blockchain rollback to revert the network to its state as of 20:00 UTC on October 14, effectively discarding all blocks created after the exploit. This rollback requires cooperation from exchanges, miners, and node operators to be successful. The development team has reassured users that there is no evidence of compromise to the notary keys or the zk-SNARKs cryptography that underpins the network's privacy features. The situation remains fluid as stakeholders await further developments regarding the rollback and the resumption of normal operations.

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Source: KLEA News