- Flow abandoned a planned chain rollback after partner pushback and will restart from the last sealed block before transactions were halted.
- The network plans account restrictions and token destruction to remove fraudulent assets rather than rewrite chain history, according to a recovery statement.
- The exploit took about $3.9 million and the FLOW token fell roughly 42%, data shows.
- Critics warned a rollback would harm decentralization and create operational risks for bridges and exchanges.
Flow confirmed an exploit in its execution layer over the weekend and initially proposed a rollback to reverse the attack, according to a post that confirmed the attack on X (https://x.com/flow_blockchain/status/2005021612714668518) and a later post that initially suggested a rollback (https://x.com/flow_blockchain/status/2005058237272584680). The attacker removed about $3.9 million, and FLOW has dropped roughly 42%, as CoinGecko data shows (https://www.coingecko.com/en/coins/flow). The network later released a statement outlining a revised recovery plan (https://docs.google.com/document/d/1Upc08jRWNbIfj1NlinxeP_IYzuUwSjOiXyKG_2UMBJ8/edit?tab=t.0#heading=h.xbl6nk7lvwbw).
Under the updated plan, the chain will restart from the last sealed block before activity was halted, preserving legitimate transaction history. Fraudulent assets will be addressed through temporary account restrictions and token burns instead of a chain reorganization, according to the recovery plan (https://docs.google.com/document/d/1Upc08jRWNbIfj1NlinxeP_IYzuUwSjOiXyKG_2UMBJ8/edit?tab=t.0#heading=h.xbl6nk7lvwbw).
Definition — rollback: a process that reverts a blockchain to an earlier state to erase specific transactions. Definition — validator: a node operator that verifies and signs blocks on a proof-based network. Definition — bridge: a service that moves tokens between different blockchains.
Developers and infrastructure providers warned that a rollback would impede decentralization and cause reconciliation work. deBridge co-founder Alex Smirnov said on X that his company received “zero communication or coordination” before the rollback plan was floated (https://x.com/AlexSmirnov/status/2005220790703136833).
The revised approach relies on an extraordinary software upgrade that grants the network’s service account temporary powers; validators must approve the change and the permissions will be revoked after remediation. Analyst Matthew Jessup said, "I like their new plan. It relies on validators to comply and approve. Keeping the EVM chain read-only is a good decision as it gives the team time to fix the exploits."
Experts say recovering funds is uncertain. Grant Blaisdell noted, “Whether the funds landed on a centralized exchange, how quickly the incident was reported, and the exchange’s willingness to cooperate all play a role,” and added that off‑boarding can trigger complex legal processes. Observers reported attackers moved assets through bridges and into Bitcoin, a transfer confirmed in an X post (https://x.com/b_block_oficial/status/2005308383956435323?s=20).
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