Zano blockchain rolls back after major exploit

Zano rolled back its blockchain by one month after a vulnerability allowed unauthorized tokens. Recent transactions were erased, with reimbursements planned from existing funds. ZANO price dropped over 12%.

Zano, a privacy-focused layer-1 blockchain, has restarted its network at block 3,833,000 after discovering a vulnerability in its Gateway Addresses feature. This flaw allowed unauthorized ZANO and Freedom Dollar (fUSD) tokens to be created, prompting the team to erase about one month of transaction history. The rollback, which occurred just before Hard Fork 6, invalidated both unauthorized and legitimate transactions from the affected period. Wallet spend keys were not compromised, but the exploit enabled unlimited token creation. During the recovery, exchanges such as MEXC paused ZANO and FUSD transactions. The Zano team announced that affected users will be reimbursed from developer, team, and large-holder funds, with no new tokens to be issued. ZANO’s price dropped over 12% within 24 hours of the rollback. All participants must update their software and follow the restored chain. Transactions outside Zano remain unaffected, and users are advised to keep transaction records for reconciliation. A reimbursement and claims process is being prepared.