Destruction of counterfeit tokens complete
The 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, carried out on a chain basis 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.
The network has been operating normally since validators deployed the security patch within 24 hours of the incident, with additional security measures now implemented across the protocol.
Restoring the Exchange service
Exchange and infrastructure services continue to be restored through active coordination with partners:
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Kraken, Gate.io and Coinbase have fully resumed FLOW deposits and withdrawals.
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Additional exchange services are completing reconciliation processes, which are expected to resume shortly.
Network health
Flow has returned to full operational health with continued ecosystem activity:
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The network processed over 3 million transactions in a single week.
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Core DeFi protocols including KittyPunch, MFL, IncrementFi, and Flowty are fully operational.
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Developer activity and protocol deployments have returned to pre-incident levels.
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Disney Pinnacle managed to reduce sellouts during the recovery period.
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Peak Money, Dapper Labs’ consumer finance platform designed to bring mainstream users to DeFi, has entered early access testing
Look forward to
Once the security patch is complete, Flow will focus on continued ecosystem growth and product development. Recent network protocol upgrades introduce continued deflationary pressures via transaction fee mechanisms, aligning tokenomics with the long-term sustainability of the network.
Full technical details about the incident and the recovery process remain available in Flow’s technical post-mortem.
