Flow and HTX Confirm User Assets Safe, Resume Full FLOW Trading After Security Fix
Flow and exchange HTX announced the full restoration of FLOW trading, deposits and withdrawals on HTX after a December 27, 2025 security incident on the Flow network. Flow validators and core contributors contained the exploit, patched the vulnerability and restored normal network operations while preserving legitimate user balances at the network level. HTX ran internal risk-management and asset-verification procedures in close coordination with Flow, completed reconciliation, and confirmed all FLOW assets held on the exchange remain intact and fully validated. HTX has resumed standard listing status and full FLOW services. Executives quoted include Molly Fu (HTX spokesperson) and Roham Gharegozlou (CEO of Dapper Labs and Flow Foundation board member). The announcement highlights Flow’s recent metrics — over 40 million unique accounts and 950 million transactions — and reiterates both parties’ commitment to security, governance coordination and ecosystem resilience.
Neutral
The news is market-neutral overall. Positive elements — confirmed containment of the exploit, validated user balances, and resumption of FLOW trading, deposits and withdrawals — remove immediate uncertainty and reduce short-term sell pressure on FLOW and HTX-listed assets. That can stabilize prices and restore liquidity, a constructive signal for traders. However, the event was a security incident; residual caution remains among users and institutional counterparties. Past incidents (exchange or network exploits followed by full asset reconciliation) typically produce a muted or mixed market response: an initial relief bounce or stabilization followed by limited upside absent new demand drivers. In the short term expect restored liquidity, lower volatility compared with the incident period, and possible modest recovery in FLOW price driven by confidence restoration. In the medium-to-long term, market reaction will depend on further transparency, post-mortem findings, any financial losses (none reported here), and demonstrable security improvements. If Flow and HTX publish detailed audits or third-party verifications, that could be bullish; conversely, any later revelations of loss or governance failure would be bearish. For traders: reduce exposure during incident windows, monitor on-chain activity and order-book depth now that services resumed, and watch for official audit releases or regulatory scrutiny that could sway sentiment.