Flow Abandons Full Rollback After $3.9M Exploit; Phased Fix and EVM Read‑Only
Flow abandoned a proposed full blockchain rollback after a $3.9 million execution‑layer exploit enabled an attacker to drain funds via cross‑chain bridges. Validators halted the network on December 27. Following heavy community, developer and bridge‑operator backlash — including objections from deBridge founder Alex Smirnov and forensic input from FindLabs — the foundation confirmed there will be no chain reorganization and legitimate pre‑halt transactions remain valid. Instead, Flow will implement a phased, targeted remediation: phase one restricts affected accounts and sets the EVM to read‑only; subsequent phases will relaunch the Cadence non‑EVM chain and gradually restore bridge and exchange operations over several days. The incident sent FLOW sharply lower (reports show drops from >20% to over 50% in some windows, with lows near $0.079), underperforming BTC and ETH. Traders should monitor account restrictions, the EVM read‑only status, bridge and exchange reopenings, forensic recovery updates and any on‑chain or legal developments. Primary keywords: Flow, FLOW token, blockchain exploit, rollback, bridge hack. Secondary/semantic keywords: EVM read‑only, Cadence relaunch, validators halted, forensic partners, cross‑chain bridge.
Bearish
The news is bearish for FLOW. The confirmed $3.9M exploit, account restrictions and an EVM read‑only state undermine immediate usability and liquidity of FLOW‑linked DeFi services and bridges, prompting sharp price declines (reported drops >20% to >50%). Abandoning a full rollback reduces systemic governance risk but also signals unresolved security exposure and uncertain asset recovery, keeping investor confidence low. In the short term expect elevated volatility, selling pressure around bridge and exchange reopenings, and thin order books while restrictions persist. In the medium term the token’s recovery will depend on forensic recovery results, successful phased relaunch of Cadence and bridges, and clear communication from validators and the Flow Foundation. If bridges and exchanges resume smoothly with asset recoveries or reimbursements, some stabilization is possible; absent recoveries or with further negative forensic findings, downside pressure may continue.