Flow Network Enters Recovery Phase After $3.9M Execution-Layer Exploit

[mendez]

The Flow Foundation has moved the network into a remediation and testing phase following a $3.9 million exploit that targeted a vulnerability in its execution layer.

The team confirmed that user balances were not compromised and emphasized that over 99.9% of accounts remain unaffected. Rather than rolling back the chain, Flow opted for a targeted recovery approach to preserve legitimate activity.

Validators have approved a software upgrade that temporarily restricts accounts tied to fraudulent tokens, while restoring normal operations for most users. While the technical response marks progress, it remains unclear whether the recovery will be enough to restore market confidence in FLOW’s price.