Zano Restarts Blockchain From Block 3,833,000 After Exploit

Zano has restarted its blockchain from block 3,833,000 after a Gateway Address vulnerability allowed unauthorized ZANO and Freedom Dollar tokens to enter circulation.

The recovery point sits immediately before Hard Fork 6, which activated on Aug. 26, removing roughly one month of accepted chain history. Zano says wallet spend keys, ordinary transaction privacy and its core consensus mechanism were not compromised.

Gateway Address Flaw Allowed Unauthorized ZANO and fUSD Issuance

Hard Fork 6 introduced Gateway Addresses to simplify integration with exchanges, bridges, decentralized trading platforms and payment services. Unlike Zano’s standard UTXO-based addresses, Gateway Addresses use an account-based model in which balances are recorded directly on-chain.

Zano says a vulnerability involving the feature affected asset issuance and enabled unauthorized ZANO and fUSD to enter circulation. The team has not disclosed the technical mechanism, how many unauthorized assets were created or the value ultimately extracted.

Developers plan to publish the technical cause and the results of a review of related Gateway Address code once the investigation is complete.

Restart Removes About One Month of Accepted Chain History

Transactions confirmed after the recovery point on the abandoned chain are no longer part of Zano’s accepted history.

Users have been told to retain transaction IDs and trading records and verify earlier transfers before sending them again. Zano also warned that the restart cannot reverse payments already settled in USDT, DAI or other assets on separate networks.

Miners, stakers, node operators, pools and service providers must install the emergency release and follow the recovered chain. Zano is bringing services including its mobile wallet node and wrapping service back online in stages.

MEXC Suspends ZANO and FUSD During Chain Recovery

Third-party wallets, exchanges and other services must migrate independently before reconnecting to the recovered network. MEXC temporarily suspended ZANO and FUSD deposits and withdrawals at the project team’s request while the migration takes place.

Zano says it is working with affected projects and counterparties to calculate losses and will publish a reimbursement and claims process. Community members have also pledged support toward restoring affected assets.

The project has not announced final compensation terms or a timetable for every third-party service to resume.

The restart removes the unauthorized issuance from Zano’s accepted chain. Recovery now depends on miners, nodes, exchanges and other services adopting the emergency release and reconciling transactions removed with the abandoned month of history.