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Crypto DeFi

Pirate Chain Bug Minted 39.8M ARRR, Inflating Supply 20%

Pirate Chain said a transaction validation flaw discovered in its source code on October 14 allowed about 39.8 million ARRR to be created without authorization, expanding the token’s total supply by roughly 20%. The newly minted tokens were moved into the Sapling privacy pool. NonKYC flagged suspicious deposits, restricted the accounts involved and blocked withdrawals, while the investigation found two validation failures: a bypass of the inflation check and incorrect parsing of output scripts.

Original source

AI take

This is a supply-integrity failure, not a market story: a validation flaw that both bypassed an inflation check and misparsed output scripts implies the chain's core accounting assumptions were wrong, and the fact that the minted tokens were routed into the Sapling privacy pool complicates any clawback or audit trail. The immediate pressure sits with venues and users exposed to the affected deposits, as NonKYC's account restrictions and withdrawal blocks show. The open questions are whether the flaw was isolated to a single transaction, how the project intends to treat the unauthorized supply, and whether other privacy-pool inflows of the same origin surface.

Generated by AI for reference only.

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