Counterfeit Token Destruction Complete
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, executed onchain 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 safeguards now implemented across the protocol.
Exchange Service Restoration
Exchange and infrastructure services continue to be restored through active coordination with partners:
-
Kraken, Gate.io, and Coinbase have fully resumed FLOW deposits and withdrawals.
-
Additional exchange services are completing reconciliation processes, expected to resume imminently.
Network Health
Flow has returned to full operational health with continued ecosystem activity:
-
The network processed over 3 million transactions in a single week.
-
Core DeFi protocols including KittyPunch, MFL, IncrementFi, and Flowty are fully operational.
-
Developer activity and protocol deployments have returned to pre-incident levels.
-
Disney Pinnacle successfully executed a sell-out consumer drop during the recovery period.
-
Peak Money, Dapper Labs’ consumer finance platform designed to bring mainstream users to DeFi, has entered early-access testing
Looking Forward
With security remediation complete, Flow is focused on continued ecosystem growth and product development. The network’s recent protocol upgrades introduce ongoing deflationary pressures through transaction fee mechanisms, aligning tokenomics with long-term network sustainability.
Full technical details on the incident and recovery process remain available in Flow’s technical post-mortem.
