Zano has restarted its blockchain at block 3,833,000, rolling back about a month of history after a flaw tied to Gateway Addresses allowed unauthorized ZANO and Freedom Dollar to enter circulation.

The recovery removes the illicit tokens but also erases legitimate activity recorded during that period. The team said the restored chain begins immediately before Hard Fork 6, the upgrade that introduced the affected feature.

Rollback reverses a month of activity

According to the project, the chain was rewound to block 3,833,000 in order to recover from the exploit. That means all transactions confirmed after that point on the affected chain are no longer part of the recovered ledger.

The rollback affects more than the unauthorized assets. Legitimate transfers and other activity that took place during roughly the past month are also invalidated and will not appear on the restarted chain.

Network participants must adopt the recovery update

Zano said the recovery depends on broad adoption of the updated software across the ecosystem. Nodes, miners, stakers, exchanges and other services need to move to the new version for the restarted network to function as intended.

The project also noted an important limit to the rollback: payments that were already settled on other blockchains cannot be undone through changes to Zano’s own chain.

Gateway Addresses were central to the issue

The vulnerability was linked to Gateway Addresses, a feature created to help bridges, exchanges and payment services manage funds through a single account-style balance.

Before Gateway Addresses, Zano wallets handled funds as separate transaction outputs rather than as one unified balance. Service operators had to scan the blockchain for incoming payments, keep track of those outputs and choose which ones to spend when processing withdrawals.

Claims process is still being prepared

The team said it is working to account for losses resulting from the incident and the rollback. It plans to publish a reimbursement and claims process, though no further details were provided in the source report.

For now, the next confirmed step is operational rather than procedural: ecosystem participants must adopt the update, while affected users await the project’s formal instructions on how claims and reimbursement will be handled.

Source: cointelegraph.com