A flaw that allowed unauthorized ZANO and fUSD issuance has pushed the network back to before Hard Fork 6. Legitimate transactions from the affected period are also excluded, while assets transferred on other networks remain beyond the rollback’s reach.
Zano has rolled its network back by roughly a month after a security flaw allowed unauthorized coins to enter circulation. In a September 27 update, the team said the chain had restarted from block 3,833,000, immediately before Hard Fork 6. Users of fUSD, the network’s dollar-targeting stablecoin, have also been asked to pause transactions.
Legitimate transactions are caught in the rollback
Zano’s statement ties the problem to a feature called Gateway Addresses. The vulnerability allowed unauthorized ZANO and fUSD issuance. The team says its investigation found no compromise of wallet spend keys or ordinary transaction privacy.
The recovery reaches beyond removing counterfeit coins. Rebuilding the blockchain’s transaction record from an earlier point also leaves legitimate transfers from the intervening period outside the recovered chain. The team stated the consequence directly:
“Transactions confirmed during the affected period are not part of the recovered chain.”
For someone who paid or received funds during that period, a current wallet balance alone cannot provide the full payment history. Old transaction IDs and trade records matter when reconciling what happened. Zano has asked users to retain those records and check a payment’s final status in an updated wallet before attempting to send it again.
Freedom Dollar reports losses of several million dollars
In its September 27 update, Freedom Dollar said counterfeit fUSD had been sold into markets before the flaw was discovered. Preliminary accounting puts the project’s assets exchanged for those units at several million dollars. No precise figure was provided; the team says it will absorb the losses.
Freedom Dollar also says earlier user funds are unaffected and fUSD’s backing remains safe. Even so, it has asked users to pause purchases, sales, swaps, transfers, deposits, withdrawals and payments until the patched network is confirmed stable. The distinction between stablecoin backing and access risk applies to fUSD: the team says its collateral is safe but is asking users to pause transactions.
Restoring the chain cannot reverse every payment
The rollback stops at Zano’s boundaries. Payments already settled in assets such as USDT, ETH or DAI on other networks do not reverse with it. Restoring the chain and recovering assets that left it are separate tasks.
Zano says its own services are returning gradually, while third-party wallets and exchanges must adopt the recovered chain themselves. It also stresses that the upgrade does not require a user’s seed phrase.
A detailed technical account, the process for affected parties to submit loss claims and the criteria for safely resuming activity are still to come. Freedom Dollar’s promise to absorb losses is also distinct from a completed payment.
