This edition of our weekly update departs from the usual format. On Sep 19, we had to halt network progression to safeguard our users after an individual attempted to exploit a VM-level atomicity issue. This action had resulted in invalid state changes. The underlying cause was identified as an order-of-operations error occurring in specific edge cases. Fortunately, the prompt reaction of our validators allowed us to contain the situation swiftly, and our team managed to prepare a fix that very same day.

At present, the threat remains fully contained. We have successfully tracked down the accounts belonging to the attacker and worked alongside major exchanges to freeze those assets. Furthermore, law enforcement agencies are actively involved in the investigation. The necessary code adjustments are already public and prepared, while comprehensive testing continues.

To restore operations, we will execute a coordinated hard fork utilizing a verified known-good checkpoint. Before implementing this on the main network, the validators will first practice the entire recovery procedure on both the Testnet and Devnet environments.

We kindly ask that you refrain from submitting or rebroadcasting any transactions until we give the official signal that everything is clear. Additionally, please avoid using EGLD and ESDT deposit or withdrawal pathways across any bridges or exchanges. Following the network restart, these bridge and exchange services will gradually resume operations in planned phases.

We will release a comprehensive technical incident report in the near future. We want to express our deepest gratitude to all the partners, validators, and community members who supported the network during these recent events. Once normal network functionality is restored, we will resume our standard weekly recaps, which will cover the past two weeks of ongoing development.