Flow Abandons Blockchain Rollback Plan, Prioritizes Decentralization Over $3.9M Loss

As per BlockTempo, on December 28, Flow blockchain was hacked through an execution layer vulnerability, resulting in the unauthorized minting and cross-chain transfer of approximately $3.9 million in assets. In the 48 hours following the attack, the development team shifted from planning a full rollback to adopting an 'isolation repair' strategy. The initial rollback proposal, which aimed to reset the chain to a pre-attack snapshot, faced strong opposition from the community and cross-chain protocols, who warned that rewriting history would undermine the principle of immutability. On December 30, Flow announced the 'Mainnet 28' upgrade, which froze affected accounts, destroyed unauthorized tokens, and restarted the network in read-only mode. The decision was made through the existing consensus mechanism, preserving decentralization. Despite the technical resolution, FLOW's price dropped over 40% within 24 hours, and total value locked (TVL) fell from $107 million to $73.8 million. Exchanges Upbit and Bithumb temporarily halted FLOW deposits and withdrawals, worsening liquidity fears. Analysts noted that while the macro environment for crypto is relatively favorable in 2025, on-chain security and governance stability remain critical internal risks.