Particle.news
Download on the App Store

Flow Abandons Rollback After $3.9M Exploit, Starts Phased Recovery

The network pivots following partner warnings that a rollback would create cross-chain accounting failures.

Overview

  • Validators approved an emergency software upgrade, bringing the chain back online in read-only testing ahead of a staged restart.
  • Remediation centers on destroying fraudulently minted tokens, preserving legitimate transaction history, and temporarily restricting accounts tied to illicit transfers.
  • Investigators identified the attacker’s Ethereum address, traced movements through Thorchain and Chainflip, and requested freezes from exchanges and issuers.
  • Bridge operators and legal advisers opposed a ledger rewind over risks of doubled balances and unbacked assets, while Dapper Labs reported no impact to its users and backed the revised plan.
  • Market fallout included a sharp drop in FLOW, temporary transfer suspensions on some exchanges, and a TVL decline that later partially rebounded, according to aggregated data.