CVE-2023-42449

/// Technical 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 partici

/// Remediation

Check the references section for vendor advisories, patches, and mitigation guidance. If immediate patching is not possible, review the CVSS vector to understand the attack surface and apply compensating controls such as network segmentation or access restrictions.

/// References