UPDATE: CADENCE CLEANUP INITIATED

Flow Foundation has begun to unrestrict affected accounts and will begin fraudulent token remediation today.

CURRENT STATUS:
✅ Cadence environment: Operational and processing transactions
✅ Phase 2 cleanup: In progress
✅ Account restoration: Temporarily restricted accounts have begun to be unrestricted, with more coming throughout the day
🔄 Fraudulent token remediation: Commencing today via transparent and auditable on-chain transactions
⏳ EVM environment: Temporarily restricted (read-only mode, Forensic analysis ongoing)

Read the full update here:

https://x.com/flow_blockchain/status/2006024885727093009?s=20

Flow Network Update: Flow EVM Back Online

Flow is now fully operational. 

The network is secure and processing transactions across both the Cadence and EVM execution environments.

This milestone marks the completion of one of the most complex recovery operations in blockchain history. What was initially projected as a sequential, multi-day process has been executed in parallel, restoring both Cadence and EVM functionality while maintaining surgical precision in removing fraudulent assets and preserving legitimate transaction history.

- Bridges and DEXes (KittyPunch, IncrementFi) are resuming normal operations today.

- Kraken has already returned to normal operations, and other cooperative centralized exchanges will be resuming services soon

A comprehensive technical post-mortem detailing the complete attack vector, forensic analysis, and remediation approach, will be published within 48 hours.

Thank you to the entire Flow community for your patience, support, and understanding.

Read the official update: https://x.com/flow_blockchain/status/2007125204603150660?s=46&t=t9o3dswTynPR1dy0Xsb-7Q

Flow Network Exploit Post-mortem

On December 27, 2025, an attacker exploited a vulnerability in the Flow network to counterfeit tokens, extracting approximately $3.9 million USD across bridges. No existing user balances were accessed or compromised. The attack duplicated assets but did not touch legitimate holdings, with the vast majority of counterfeit assets being contained onchain or frozen by exchange partners before they could be liquidated. Network validators have ratified a decentralized governance action authorizing the permanent destruction of 100% of counterfeit assets. The network resumed operations on December 29th and is operating as expected​ with full transaction history preserved.

The attack demonstrated significant technical sophistication. The attacker deployed over 40 malicious smart contracts in a coordinated sequence, exploiting a three-part attack chain. The root cause was a type confusion vulnerability in the Cadence runtime (v1.8.8), now patched (v1.8.9 and later). The flaw allowed the attacker to disguise a protected asset (which should be non-copyable) as a standard data structure (which can be copied), bypassing the runtime's safety checks and enabling token counterfeiting.

Full technical details of the vulnerability, exploit mechanism, forensic analysis, and remediation architecture are found on the latest Flow post in the below link:
🔗 https://x.com/flow_blockchain/status/2008612688755130840

All Remaining Counterfeit FLOW Has Been Recovered

This morning, the final recovery of outstanding counterfeit FLOW from remaining centralized exchanges, including Binance and HTX, was executed by the Community Governance Council.
As of today, all counterfeit FLOW traced by forensic firms has been successfully recovered and is now isolated and restricted on-chain pending destruction. This marks the conclusion of Phase 4 of the Isolated Recovery Plan, fulfilling the mandate ratified by the validator network via super-majority consensus.

Permanent destruction of counterfeit tokens is scheduled for January 30th, 2026.

See the official post on X for more details: https://x.com/flow_blockchain/status/2010815968352878996

Flow Ecosystem & Network Update

Since the 27th December Security Incident, the Flow ecosystem has resumed normal operations. The network is secure, the vulnerability was patched within 24 hours, and Flow engineers have implemented additional security measures.

Network health and builder activity have reached pre-incident levels, characterized by a range of milestones:

- Consumer Adoption: Disney Pinnacle successfully executed a sell-out drop this week.
- Network Throughput: Over 3 million transactions were processed last week, putting the network on track to surpass 1 billion lifetime transactions within the next 90 days.
- Operational Restoration: Core protocols, including KittyPunch, MFL, IncrementFi, and Flowty, are fully operational.
- Active Development: Peak Money has initiated early-access testing, and the Grants DAO Round 2 is now officially underway.

However, there are some outstanding infrastructure aspects yet to come back online, that the Foundation is actively working with all community members, partners, and builders to address.

Please read the full announcement on X to get all of the details here:

https://x.com/flow_blockchain/status/2016569812554510557?s=20

Counterfeit Token Destruction Complete

Flow Foundation today confirmed the permanent destruction of 87.4 billion counterfeit FLOW tokens, concluding the technical remediation of the December 27, 2025 security incident.

The destruction, executed onchain by the Community Governance Council, removes all seized counterfeit assets from circulation. This action completes the final mechanical step of Flow's isolated recovery plan as outlined in the December technical post-mortem.

Please read the full announcement here: https://x.com/flow_blockchain/status/2017321701743419470?s=20

Ecosystem Update: Celer Bridge

We're glad to report a resolution in partnership with Celer for anyone holding ceWBTC and ceWETH. The Celer ceWBTC and ceWETH bridges are being sunsetted, and holders can exchange for equivalent assets on Flow EVM. There are a range of other major bridging options available on Flow, link included below.

This exchange program covers all ceWBTC and ceWETH holders on Flow; regardless of when you acquired them, where they're held on the network (Cadence or EVM), or the amount.
If you hold any ceWBTC or ceWETH on Flow, you are eligible for the exchange.

To begin the exchange process, contact support@flow.com. Requests will be processed directly by the Foundation.

See these major bridging providers here https://flow.com/ecosystem#infrastructure

Exchange Update:

MEXC, a leading global exchange serving 40M+ users across 170+ countries, has resumed $FLOW trading, deposits, and withdrawals.

MEXC joins Binance, Coinbase, Kraken, OKX, HTX, and Gate as fully operational for $FLOW.

Messari Pulse Report - Flow Network: From Collectibles To Consumer DeFi

Messari published an analysis of Flow's consumer DeFi strategy.

The Pulse Report covers how Flow Credit Market (FCM) and Peak Money are building consumer finance infrastructure on top of Flow's 40M+ user base, how enshrined protocols concentrate liquidity into shared infrastructure that any app can build on, and how this has all been enabled by the Crescendo and Forte protocol upgrades, making it possible for Flow Developers to build the next generation of consumer applications.

Go here for more details and to read the full report: https://flow.com/post/messari-on-flow-from-collectibles-to-consumer-defi

Flow Foundation: A Commitment to FLOW

Flow Foundation has published a commitment to FLOW, backed by three initiatives.

1️⃣ At 12:00 PM PT today, the Foundation will permanently burn 50,343,896.87 FLOW, removing them from circulation entirely. These tokens were acquired through open-market purchases and Foundation treasury funds over the past two months.

2️⃣ The Foundation is committing to acquire a minimum of an additional 50,000,000 FLOW from the open market, to be held in long-term treasury, over the next few months.

3️⃣ The transaction fee update that went live in December is designed to make FLOW net deflationary at a sustained 250 TPS. Even with the fee increase, transaction costs on Flow remain among the lowest of any Layer 1 network.

Full details here:
https://x.com/flow_blockchain/status/2026017608970211570?s=46&t=T6SxtrR1ikBVPf5dmzNq4Q

Flow Ecosystem: March 2026 Update

Every major global exchange has now independently reviewed and restored full FLOW services. This week, Binance published a joint resolution with Flow Foundation and removed the monitoring tag. HTX independently confirmed the same. In Korea, Korbit cleared FLOW after its own review.

Alongside this, the ecosystem continues to grow. Disney, NBA, NFL, and Ticketmaster are all seeing success as they continue actively building on Flow. In Japan, 24Karat is bringing Flow collectibles to 250,000 people a week through 2,000+ vending machines. Flow developer activity hit all-time highs in 2025. And Messari published an independent Pulse Report validating Flow's path to consumer finance.

The article below covers all of this as well as the Foundation's commitment to Korea, including steps being taken to advocate for Korean holders ahead of the March 16 deadline, and what comes next for Flow.

Read the full update:
Flow in 2026: Exchange Resolutions Complete, Ecosystem Growing, and a Commitment To Korea