Flow Blockchain Abandons Rollback Plan After $3.9 Million Exploit
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Security Breach Response: Flow blockchain has scrapped its initial full rollback plan following a $3.9 million exploit, opting for a targeted remediation strategy in response to intense pushback from developers and legal experts, thereby avoiding potentially greater financial damage.
- Technical Implementation Plan: Affected accounts have been temporarily restricted, and EVM operations are currently read-only, with the first phase of the implementation plan aimed at preserving the validity of legitimate transactions, ensuring users do not need to resubmit their activities and maintaining basic trust in the network.
- Market Reaction: The exploit and proposed recovery plan led to a dramatic over 50% drop in the FLOW token's price within a single day, briefly hitting lows around $0.079, reflecting persistent investor concerns about the network's security and governance, even as Bitcoin and Ethereum rebounded during the same period.
- Phased Restart Strategy: Flow plans to gradually restart its non-EVM chain, Cadence, after implementing the remediation plan, with operations between the bridge and exchange expected to resume, and analysts suggest this revised plan may help restore market confidence while avoiding disruptive chain reorganizations.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
