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FIGR_HELOC $1.00Zano Network Rewinds 30 Days After Gateway Address Security Flaw
Zano rolled its ledger back to block 3,833,000, erasing about 30 days of transactions after a Gateway Address flaw allowed unauthorized ZANO and fUSD.
Key takeaways
- Thirty days erased. The rollback eliminated approximately 30 days of blockchain data and returned operations to block 3,833,000.
- One hundred ZANO. Creating a Gateway Address required a 100 ZANO registration fee that was permanently removed from circulation.
- Price fell. ZANO was down 4% over the last day, 32% over the past week and 40.6% year-to-date.
What happened
Zano, a privacy-oriented layer-1 blockchain, reset its network after a security vulnerability allowed unauthorized tokens to be created. The restoration process eliminated approximately 30 days of blockchain data. The core team identified a serious issue involving Gateway Addresses that enabled unauthorized ZANO and fUSD to enter circulation. Network operations resumed from block 3,833,000.
The team initially said a one-day rollback was necessary. By the following day, Zano confirmed its ledger had been rolled back to block height 3,833,000, effectively erasing 30 days of previously confirmed transactions. On Tuesday, Zano said a hotfix had been pushed and the network was stable on the updated chain. Third-party providers need to update their nodes to the updated chain before processing ZANO and Zano-issued asset transfers.
Trading platform MEXC temporarily disabled both deposit and withdrawal functions for ZANO and FUSD tokens while processing the migration, and no specific timeline for service restoration had been provided at the time of reporting. Quinten van Welzen, Zano's head of marketing and growth, clarified that the development team lacks authority to unilaterally enforce a rollback.
Why it matters
The vulnerability undermined the blockchain's foundational principle of maintaining a fixed token supply, according to the development team. Third-party wallets, exchanges and payment services must update their nodes before they can safely process transactions again. Zano advised users to wait for each service to confirm through its official channels that it has resumed operations before sending funds.
ZANO has had a rough week. At press time on Tuesday, it was down 4% against the U.S. dollar over the last day. Over the past week, 32% has been shaved off ZANO's price, and year-to-date, the privacy coin is down 40.6%. The team said the recovery process is being prepared for anyone who was affected.
What the data shows
The restored chain resumes from block 3,833,000. Creating a Gateway Address required a 100 ZANO registration fee, which was permanently removed from circulation, and blockchain records indicate that at least two such addresses were created within the feature's initial seven days of operation. For comparison, the 2010 Bitcoin inflation bug rolled back 53 Bitcoin network blocks, and Ethereum Classic suffered a rollback of over 7,000 blocks back in 2020.
Background
Gateway Addresses were designed to streamline integration for cryptocurrency exchanges, cross-chain bridges and payment processors. The system provided these platforms with an account-based balance model rather than Zano's traditional unspent transaction output tracking mechanism. An exploitable weakness within this system enabled the unrestricted generation of both ZANO and Freedom Dollar tokens. A comprehensive technical analysis detailing the precise mechanics of the exploit remains unpublished.
What is still unclear
- A comprehensive technical analysis detailing the precise mechanics of the exploit remains unpublished.
- No specific timeline for service restoration had been provided for MEXC at the time of reporting.
- The team said more details on the recovery process will be delivered soon.
Questions readers ask
What happened to the Zano network?
Zano rolled its ledger back to block 3,833,000 and eliminated approximately 30 days of blockchain data after a Gateway Address vulnerability allowed unauthorized ZANO and fUSD to enter circulation. The team said a hotfix was pushed and the network is stable on the updated chain.
Why did Zano roll back the chain?
The core team found an exploitable weakness in Gateway Addresses that enabled the unrestricted generation of ZANO and Freedom Dollar tokens. According to the development team, this vulnerability undermined the blockchain's foundational principle of maintaining a fixed token supply.
Can I use ZANO on exchanges?
MEXC temporarily disabled both deposit and withdrawal functions for ZANO and FUSD tokens while processing the migration, and no specific timeline for service restoration had been provided at the time of reporting. Zano advised users to wait for each service to confirm through its official channels that it has resumed operations before sending funds.
What happens to transactions from the affected period?
All transactions executed during the affected timeframe will be absent from the restored blockchain. The rollback cannot reverse transactions already finalized on external blockchain networks.
