PANews, October 16 — Pirate Chain has published an investigation update on an exploit. On October 14, a transaction validation vulnerability was discovered in Pirate Chain’s source code. The vulnerability allowed approximately 39.8 million ARRR to be created without authorization, increasing the token’s total supply by about 20%. The newly created tokens were then transferred to the Sapling privacy pool. The NonKYC platform subsequently detected suspicious deposits, restricted the accounts involved, and blocked withdrawals. The exploit combined failures in two validation checks: it bypassed the issuance limit check, and output scripts were parsed incorrectly.

As a voluntary precautionary measure, dPoW (delayed Proof of Work) operators have reached a consensus to temporarily suspend notarization services. The team has also asked exchanges and mining pools to voluntarily pause related operations while a recovery plan is developed. The Pirate Chain network remains operational. The Pirate Chain team is investigating the matter and working with other communities to develop a solution.