As crypto adoption surged and usage reached mainstream, risks associated with the digital space also skyrocketed. In fact, crypto hack incidents have surged significantly in recent years.
In 2025, TRM Labs reported that more than $2.7 billion in crypto was exploited. Chainalysis reported that crypto hacks from North Korea jumped 51% in 2025, increasing from $1.4 billion to $2.02 billion.
With hackers running rampant across the crypto space, the Flow blockchain is the latest victim.
Flow Network exploited for $3.9 million
The Flow Foundation reported that on the 27th of December, an attacker exploited a vulnerability in Flow’s execution layer and moved $3.9 million off the network.
According to Forensic data, the exploited funds were routed through bridges such as Celer, Debridge, Relay, and Stargate. These funds were then actively launded through Thorchain and Chainflip.
Fortunately, the attacker’s wallet was identified, flagged, and a freeze request was submitted to Circle, Tether, and other exchanges.
Thereafter, the network halted all exit paths, effectively closing any further unauthorized activity. Additionally, Upbit and Bithumb suspended FLOW token deposits and withdrawals.
Despite all security incidents, user balances remained unaffected, and all user deposits remained intact.
FLOW hits a new low
The security incident significantly impacted the Flow price action. In fact, Flow [FLOW] plummeted 46%, dropping from $0.17 to a new all-time low of $0.097, then rebounded.
At press time, FLOW traded at $0.117, down 32.54% on the daily charts. At the same time, market cap dropped from $284 million to $164 million, reflecting massive capital outflows.
What caused the price drop?
Following the security incident, holders and traders panicked and began aggressive dumping. According to Coinalyze data, sellers dominated Binance, Kraken, and Coinbase.
The altcoin saw 405 million in Sell Volume compared to 382 million in Buy Volume, resulting in a 23 million Sell Bull Delta, indicating aggressive selling.
Can the market recover from the slip?
FLOW plummeted as holders and market participants panicked and dumped their holdings after a security breach, fearing more losses.
As a result, downward pressure intensified as sellers dominated the market, as evidenced by the Directional Movement Index (DMI). This indicator dropped to 5, reflecting strong downside momentum.
At the same time, its Relative Strength Index (RSI) dropped from 29 to 19, slipping deeper into oversold territory.
Such a drop in these two momentum indicators suggested a weakened market and a higher likelihood of continuation of the bearish trend.
Therefore, if the fear witnessed in the market persists, FLOW could drop again and likely breach $0.1 support level.
However, if the slip attracts discount buyers, the recovery path could hold, and FLOW could reclaim pre-hack levels around $0.17.
Final Thoughts
- An attacker exploited a vulnerability in Flow’s execution layer and moved $3.9 million off the network.
- FLOW token plummeted 46% to a new low of $0.097, then rebounded to $0.1.
