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Flow Foundation Advances Recovery After $3.9 Million Exploit

Flow Foundation Advances Recovery After $3.9 Million Exploit

Author:

Global Cryptocurrency

Published:

2026-01-02 04:47:01

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BTCCSquare news:

The FLOW Foundation has initiated phase two of its recovery following a $3.9 million security breach on December 27, 2025. The exploit, which targeted cross-chain bridges, resulted in the unauthorized transfer of NFTs and other assets. Validators intervened to halt the network, preventing further losses.

Developers have identified a path to restore ethereum Virtual Machine (EVM) functionality while addressing issues on the non-EVM chain, Cadence. The foundation is currently testing fixes and plans to gradually restore network availability once security is confirmed. On-chain audits show progress, with accounts being returned and fake tokens reverted daily.

The incident has sparked broader discussions about safeguarding users, exchanges, and governance during blockchain security compromises. Flow initially considered a blockchain reversion but opted for a targeted recovery approach.

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