Developers of Altcoin That Suffered a Major Loss After Being Hacked Issue Statement – What Happens Next?

The Flow Foundation has shared a confirmed update regarding the security breach that occurred on the Flow (FLOW) network yesterday.

According to the statement, the attacker exploited a vulnerability in Flow’s execution layer to transfer approximately $3.9 million worth of assets off the network. After the incident was detected, validators coordinated to shut down the network.

The Flow Foundation maintained that the attack did not gain access to user balances and that all user deposits remain secure. They announced that the network would be restored to a pre-explosion checkpoint to completely clean the ledger of unauthorized transactions, and a protocol fix has been released to this end.

Authorities stated that the funds resulting from the attack were largely transferred through bridges such as Celer, Debridge, Relay, and Stargate, that the attacker’s wallet has been identified and marked, and that ongoing laundering attempts via Thorchain/Chainflip are being monitored in real-time. They also mentioned that requests to freeze funds have been submitted to Circle, Tether, and major exchanges, and that forensic analysis is ongoing.

The foundation’s assessment stated that the amount of funds withdrawn from the network was manageable and did not threaten the integrity of the network or user funds. It was also stated that with the network shutdown decision, all exit routes were closed, making further unauthorized transactions impossible.

It was reported that the protocol fix is in its final validation phase, and if testnet validation is successful, the network is expected to be restarted within 4–6 hours. The next status update is planned for within 2 hours, and a comprehensive technical report within 72 hours.

On the other hand, it was stated that the Flow ecosystem’s integration with numerous cross-chain bridges, exchanges, and infrastructure providers necessitated additional synchronization during the restart process. To prevent data inconsistencies and service disruptions, the network will remain in “read-only” mode until critical infrastructure providers achieve full compliance.

During the attack on the Flow network, the price of the FLOW token dropped by 45%. The hack resulted in a loss of $3.9 million in assets.

Weekly chart showing the decline in FLOW price.