Pirate Chain Import Exploit Update On 14 October 2026, a transaction validation vulnerability in Pirate Chain source code was discovered which allowed the unauthorized creation of approximately 39.8 million ARRR, increasing the supply by approximately 20%. The newly minted funds were immediately transferred into the Sapling shielded pool. NonKYC subsequently identified suspicious deposits and acted quickly to restrict the associated account and prevent withdrawals. Due to the nature of shielded transactions, the full subsequent movement of the funds cannot be traced, but we believe activity related to the unauthorized issuance was otherwise restricted primarily to on-chain transactions. The exploit combined two validation failures bypassing the issuance check and incorrect interpretation of the output scripts. Evidence does not indicate any compromise of notary keys or the cryptography underlying Pirate Chain's shielded transactions. As a voluntary precaution, dPoW operators have collectively agreed to temporarily suspend notarizations, while exchanges and mining pools have been asked to voluntarily pause operations as a recovery plan is developed. Because Pirate Chain is decentralized, it is not possible to freeze the network or unilaterally rollback its blockchain history. Pirate Chain remains operational, but we ask that all users temporarily refrain from sending or moving funds. The Pirate Chain team is currently investigating the event and developing solutions in collaboration with other communities. Further technical details and recovery instructions will be provided in the forthcoming post-mortem.