CVE-2023-42449

CVE-2023-42449 is a high-severity vulnerability in Iohk Hydra with a CVSS 3.x base score of 8.1. It is not currently listed as actively exploited by CISA, and its EPSS exploit-prediction score is low. The underlying weakness is classified as CWE-20.

Key facts

Description

Hydra is the two-layer scalability solution for Cardano. Prior to version 0.13.0, it is possible for a malicious head initializer to extract one or more PTs for the head they are initializing due to incorrect data validation logic in the head token minting policy which then results in an flawed check for burning the head ST in the `initial` validator. This is possible because it is not checked in `HeadTokens.hs` that the datums of the outputs at the `initial` validator are equal to the real head ID, and it is also not checked in the `off-chain code`. During the `Initial` state of the protocol, if the malicious initializer removes a PT from the Hydra scripts it becomes impossible for any other participant to reclaim any funds they have attempted to commit into the head, as to do so the Abort transaction must burn all the PTs for the head, but they cannot burn the PT which the attacker controls and so cannot satisfy this requirement. That means the initializer can lock the other participants committed funds forever or until they choose to return the PT (ransom). The malicious initializer can also use the PT to spoof that they have committed a particular TxO when progressing the head into the `Open` state. For example, they could say they committed a TxO residing at their address containing 100 ADA, but in fact this 100 ADA was not moved into the head, and thus in order for an other participant to perform the fanout they will be forced to pay the attacker the 100 ADA out of their own funds, as the fanout transaction must pay all the committed TxOs (even though the attacker did not really commit that TxO). They can do this by placing the PT in a UTxO with a well-formed `Commit` datum with whatever contents they like, then use this UTxO in the `collectCom` transaction. There may be other possible ways to abuse having control of a PT. Version 0.13.0 fixes this issue.

Frequently asked questions

What is CVE-2023-42449?
Hydra is the two-layer scalability solution for Cardano. Prior to version 0.13.0, it is possible for a malicious head initializer to extract one or more PTs for the head they are initializing due to incorrect data validation logic in the head token minting policy which then results in an flawed check for burning the head ST in the `initial` validator. This is possible because it is not checked in `HeadTokens.hs` that the datums of the outputs at the `initial` validator are equal to the real head ID, and it is also not checked in the `off-chain code`. During the `Initial` state of the protocol, if the malicious initializer removes a PT from the Hydra scripts it becomes impossible for any other participant to reclaim any funds they have attempted to commit into the head, as to do so the Abort transaction must burn all the PTs for the head, but they cannot burn the PT which the attacker controls and so cannot satisfy this requirement. That means the initializer can lock the other participants committed funds forever or until they choose to return the PT (ransom). The malicious initializer can also use the PT to spoof that they have committed a particular TxO when progressing the head into the `Open` state. For example, they could say they committed a TxO residing at their address containing 100 ADA, but in fact this 100 ADA was not moved into the head, and thus in order for an other participant to perform the fanout they will be forced to pay the attacker the 100 ADA out of their own funds, as the fanout transaction must pay all the committed TxOs (even though the attacker did not really commit that TxO). They can do this by placing the PT in a UTxO with a well-formed `Commit` datum with whatever contents they like, then use this UTxO in the `collectCom` transaction. There may be other possible ways to abuse having control of a PT. Version 0.13.0 fixes this issue.
How severe is CVE-2023-42449?
CVE-2023-42449 has a CVSS 3.x base score of 8.1, rated high severity. It is exploitable over network with low attack complexity, requires low privileges and no user interaction. Impact on confidentiality is none, integrity high, and availability high.
Is CVE-2023-42449 being actively exploited?
It is not currently listed in CISA's KEV catalog. Its EPSS exploit-prediction score is 1% (56th percentile), an estimate of the probability of exploitation in the next 30 days.
What products are affected by CVE-2023-42449?
CVE-2023-42449 affects Iohk Hydra. See the affected-products list for the exact vulnerable versions.
How do I fix CVE-2023-42449?
Review the linked vendor and NVD advisories for patched versions and mitigations, then upgrade or apply the recommended workaround. Given its high severity, prioritise patching exposed systems.
When was CVE-2023-42449 published?
CVE-2023-42449 was published on 2023-10-04 and last updated on 2026-06-17.

References

Affected products (1)

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