FLOW Plunges 46% After $3.9M Exploit, Recovery Plan Sparks Debate

• Flow Blockchain suffered a $3.9 million exploit in December 2025, causing FLOW to plummet 46% according to market reports.
• The Foundation abandoned a blockchain rollback plan to preserve decentralization, opting for isolated recovery.
• Binance delisted FLOW/BTC and flagged the token as high-risk post-incident as reported by industry analysts.
• This approach preserved transaction history while freezing compromised accounts.

Flow (FLOW) faces intense scrutiny after a $3.9 million December 2025 exploit triggered a market crisis. The security breach targeted its execution layer and ignited debates about blockchain governance under pressure. Exchange reactions and regulatory complications compound recovery challenges for this consumer-focused Layer 1 blockchain.

How Did Flow's $3.9M Exploit Impact FLOW Token Performance?

The December 2025 exploit erased $120 million from FLOW's market cap immediately. FLOW plunged 46% to a historic low of $0.097 as panic selling accelerated. Technical indicators like RSI and DMI signaled strong bearish momentum after the security incident. Major platforms including Upbit and Bithumb suspended FLOW deposits to contain risks.

Binance removed the FLOW/BTC trading pair following the exploit citing routine volatility reviews. The exchange added FLOW to its monitoring list for high-risk assets despite restoration efforts. FLOW later recovered partially to $0.117 but sellers dominate order books. This aligns with TRM Labs' 2025 report showing $2.7 billion in industry-wide crypto theft .