The Flow Foundation said it is continuing its remediation efforts following a $3.9 million exploit of the Flow blockchain.
Flow said it has entered phase two of its recovery plan after scrapping a previously proposed blockchain rollback.
In a post on X, Flow said it had made “significant progress” and expects the next stage to take several days.
Developers said they have identified a path to restore Ethereum Virtual Machine functionality while continuing repairs on the Cadence chain.
The Community Governance Council continues executing cleanup transactions under validator-authorised boundaries.
Flow said.
Flow added that all remediation activity remains publicly auditable through on-chain block explorers.
The foundation confirmed that Cadence and EVM remediation will now proceed simultaneously.
Flow abandoned its rollback proposal after community backlash over decentralisation and security risks.
In its post-mortem report, Flow said it was concerned about one centralised exchange’s handling of the incident.
Within hours of the exploit, a single account deposited 150M $FLOW and converted a substantial portion to BTC.
Flow said.
Flow said the transaction pattern indicated an AML and KYC failure that exposed users to financial risk.
Although Flow did not name the exchange, community members speculated it could be Binance.
Separately, Trust Wallet confirmed a Christmas Day browser extension exploit that led to $7 million in losses.
The affected users will be fully reimbursed.
Changpeng Zhao said.
At the time of reporting, Flow price was $0.0855.