{"id":564914,"date":"2026-03-06T08:52:47","date_gmt":"2026-03-06T08:52:47","guid":{"rendered":"https:\/\/Blockchain.News\/news\/flow-recovers-december-2025-security-breach-3-9m-losses"},"modified":"2026-03-06T08:52:47","modified_gmt":"2026-03-06T08:52:47","slug":"flow-recovers-after-december-2025-security-breach-cost-3-9m","status":"publish","type":"post","link":"https:\/\/e-bitco.in\/index.php\/2026\/03\/06\/flow-recovers-after-december-2025-security-breach-cost-3-9m\/","title":{"rendered":"FLOW Recovers After December 2025 Security Breach Cost $3.9M"},"content":{"rendered":"
\n

Zach Anderson<\/a> Mar 06, 2026 08:52<\/span> <\/p>\n

Flow Network resolves December 2025 exploit that created counterfeit tokens and caused $3.9M in losses. FLOW token rebounds 16% as protocol deploys fix.<\/p>\n

\"FLOW <\/a> <\/figure>\n

Flow Network has officially resolved the December 2025 security incident that allowed an attacker to create counterfeit tokens, resulting in approximately $3.9 million in confirmed losses across the ecosystem.<\/p>\n

The FLOW token has rebounded sharply, trading at $0.10 with a 16% gain over 24 hours as of January 6, 2026. The recovery follows a brutal 40% crash that pushed prices to $0.075 in early January after the exploit became public.<\/p>\n

What Actually Happened<\/h2>\n

On December 27, 2025, an attacker discovered a flaw in Flow’s Cadence runtime\u2014the smart contract execution layer\u2014that allowed token duplication rather than proper minting. This bypassed the network’s supply controls entirely.<\/p>\n

The stolen funds moved quickly off-network through multiple cross-chain bridges including Celer, Debridge, Relay, and Stargate. Binance froze hacker-linked funds shortly after the exploit, limiting some of the damage.<\/p>\n

Here’s what matters for holders: the Flow Foundation confirmed that no existing user account balances were compromised. The attacker created counterfeit assets from nothing rather than draining legitimate wallets.<\/p>\n

The Response Timeline<\/h2>\n

Validators coordinated a network halt within six hours of detecting malicious activity, putting Flow into read-only mode. That’s faster than most Layer-1 responses to similar incidents, though the two-day downtime still caused problems.<\/p>\n

NFT lending platforms felt the pain particularly hard\u2014loan settlements couldn’t process during the freeze, creating liquidation risks for some users.<\/p>\n

Operations resumed after validators executed a governance-approved process to permanently destroy the counterfeit assets and deploy Mainnet 28, the protocol fix addressing the Cadence vulnerability.<\/p>\n

Market Impact<\/h2>\n

FLOW’s current market cap sits at $142.64 million, still well below pre-exploit levels. The token’s recovery trajectory will depend heavily on whether any additional vulnerabilities surface during post-mortem audits.<\/p>\n

The incident adds Flow to a growing list of protocols hit by runtime-level exploits in late 2025, raising broader questions about Cadence security versus more battle-tested smart contract languages.<\/p>\n

For traders watching the FLOW recovery, the next catalyst is likely the release of a full technical post-mortem, expected in the coming weeks according to Flow Foundation communications.<\/p>\n

Image source: Shutterstock<\/i><\/span> Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Zach Anderson Mar 06, 2026 08:52 Flow Network resolves December 2025 exploit that created counterfeit tokens and caused $3.9M in losses. FLOW token rebounds 16% as protocol deploys fix. Flow Network has officially resolved the December 2025 security incident that allowed an attacker to create counterfeit tokens, resulting in approximately $3.9 million in confirmed losses […]<\/p>\n","protected":false},"author":1,"featured_media":564915,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[40,24319,4093,24320,25,8787],"class_list":{"0":"post-564914","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-blockchain","8":"tag-binance","9":"tag-defi-exploit","10":"tag-flow","11":"tag-flow-network","12":"tag-news","13":"tag-security-breach"},"_links":{"self":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/564914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/comments?post=564914"}],"version-history":[{"count":0,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/564914\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media\/564915"}],"wp:attachment":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media?parent=564914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/categories?post=564914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/tags?post=564914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}