Headline: Flow drops rollback plan after $3.9M hack, pivots to “isolated recovery” as tests begin Flow has abandoned an initial plan to roll its chain back to a pre-hack state and is moving forward with an “isolated recovery” approach after a weekend breach that saw about $3.9 million stolen and quickly moved off-network. What happened - The exploit was first reported over the weekend. The attacker moved the stolen funds into Ethereum and other assets almost immediately, limiting the effectiveness of a full-chain rollback. - Because the stolen assets left the chain so quickly, key ecosystem partners and exchanges opposed the rollback proposal — in part because it risked disrupting legitimate users who weren’t notified in time. Alex Smirnov, co-founder of deBridge (which handles a majority of FLOW trading volume), said his team wasn’t informed of rollback plans. Why the plan changed - Security analyst Tay Vano warned the rollback would be ineffective once the funds had been bridged off chain, and could unfairly impact innocents. - In response to that feedback, Flow’s governance pivoted to an “isolated recovery” plan intended to preserve valid user activity while addressing the breach and restoring operations. Current status and next steps - Flow announced that validators have reached consensus on the software upgrade supporting the isolated recovery, and testing is currently underway. Final chain operations will only be reactivated after testing is complete. - After tests finish, the upgrade will move into “phase 1 deployment,” which aims to resume broader chain operations and impose restrictions on addresses linked to the hack. Ecosystem reaction - Dapper Labs, one of Flow’s largest ecosystem builders, backed the revised plan, saying it preserves legitimate user activity, avoids a rollback, and provides a clear path to restoring the network — stressing safety and urgency. Market impact and context - The chain’s native token, FLOW, plunged more than 40% to about $0.10 following the incident. - The incident adds to a growing tally of crypto breaches in 2025, with total losses this year already surpassing $3 billion. Note: This report is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research before making decisions. © 2025 AMBCrypto Read more AI-generated news on: undefined/news

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