Flow speeds recovery, warns exchanges after $3.9M exploit
Flow’s recovery effort has entered “phase two” on the EVM after the protocol abandoned an earlier proposal to roll back the chain following a $3.9 million exploit. Project maintainers say the shift is intended to speed asset restoration and reduce community contention tied to a rollback, but the change keeps the situation fluid and technically complex.
The update explicitly flags higher operational risk for exchanges and custodians, which may need to take precautionary steps like pausing deposits and withdrawals or conducting additional checks on balances. Token holders and counterparties should monitor official Flow channels for guidance and expect possible delays or temporary uncertainty around finality and reconciliations for FLOW positions.