Pirate Chain Says Bug Enabled Unauthorized Minting of 39.8M ARRR

Pirate Chain said a transaction-validation flaw discovered Oct. 14 enabled the unauthorized creation of about 39.8 million ARRR, an amount equal to roughly 20% of the network’s supply.

The new issuance raised total supply by about one-fifth, making the incident both a supply increase and a transaction-security event. The tokens later moved into the Sapling privacy pool.

Pirate Chain identified two transaction-validation defects. It said there was no evidence that notarization keys or the cryptography used for private transactions had been compromised. The disclosure points to a validation flaw without establishing a failure in those protections.

NonKYC restricted the associated accounts and blocked withdrawals. dPoW operators temporarily suspended notarization as a precaution. Exchanges and mining pools were asked to halt related operations voluntarily.

Pirate Chain’s network remains online, but the project advised users to avoid transferring funds for now. Account restrictions and the temporary notarization halt are in place; pauses at exchanges and mining pools remain voluntary.