HIFI has expanded on Flow. 40M has been added to the stablecoin marketcap. HIFI is offering financial rails that power consumer DeFi, from international ramps to financial APIs that already process 100,000 transactions a day on the network.

Flow Foundation is permanently burning 50,343,896.87 FLOW today at 12:00 PM PT. In the coming months, an additional 50M FLOW will be acquired for the long-term treasury. These initiatives are part of a wider commitment towards $FLOW from the Foundation flow.com/post/flow-foundatio…

NFT Sales Volume (24 hours) 🌊

Isolated Recovery Complete – Counterfeit FLOW Recovered This morning, the final recovery of outstanding counterfeit FLOW from remaining centralized exchanges, including Binance and HTX, was executed by the Community Governance Council. As of today, all counterfeit FLOW traced by forensic firms has been successfully recovered and is now isolated and restricted on-chain pending destruction. This marks the conclusion of Phase 4 of the Isolated Recovery Plan, fulfilling the mandate ratified by the validator network via super-majority consensus. With the recovery complete, the Foundation has scheduled for tomorrow, Jan 13th, 2026 the removal of elevated access used by the Community Governance Council for recovery operations. This temporary emergency measure, deployed for the first time in Flow’s five-year history, was critical for this surgical recovery. It is important to remind everyone that any power given to and action taken by the Governance Council is fully transparent and auditable onchain. Furthermore, any changes to node software must be approved by a majority of network validators in order to proceed. Permanent destruction of counterfeit tokens is scheduled for January 30th, 2026. In the interim, external legal counsel and forensic partners are coordinating with exchanges to assess user exposure. The Foundation is fully committed to cooperate with exchange partners to facilitate a prompt return to full functionality across every trading venue. Coinbase, Kraken, and Gate have already resumed their deposit and withdrawal services. We want to thank our community of believers, ecosystem partners, infrastructure providers, and the cooperative exchange teams who made this targeted and orderly recovery feasible. The surgical removal of the threat is complete, the network is restored, and Flow is ready to move forward stronger than before.

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🇺🇸 California Governor Gavin Newsom has signed a bill allowing the state to transfer custody of any Bitcoin or cryptocurrency held on exchanges after three years of inactivity. Under the law, inactive accounts on centralized exchanges are classified as "unclaimed property."

Flow Network Exploit Post-mortem
 On December 27, 2025, an attacker exploited a vulnerability in the Flow network to counterfeit tokens, extracting approximately $3.9 million USD across bridges. No existing user balances were accessed or compromised. The attack duplicated assets but did not touch legitimate holdings, with the vast majority of counterfeit assets being contained onchain or frozen by exchange partners before they could be liquidated. Network validators have ratified a decentralized governance action authorizing the permanent destruction of 100% of counterfeit assets. The network resumed operations on December 29th and is operating as expected​ with full transaction history preserved. Attack Vector The attack demonstrated significant technical sophistication. The attacker deployed over 40 malicious smart contracts in a coordinated sequence, exploiting a three-part attack chain:  1) Attachment import validation bypass 2) Circumvention of defensive checks on built-in types 3) Exploitation of contract initializer semantics.  The root cause was a type confusion vulnerability in the Cadence runtime (v1.8.8), now patched (v1.8.9 and later). The flaw allowed the attacker to disguise a protected asset (which should be non-copyable) as a standard data structure (which can be copied), bypassing the runtime's safety checks and enabling token counterfeiting. Remediation Beyond bridging assets out of Flow, the attacker attempted to deposit counterfeit FLOW across several CEX, with many exchange partners freezing the deposits upon receipt due to the abnormal size and internal AML protocols. Approximately 50% of those counterfeit FLOW deposits have already been returned by cooperative exchange partners (OKX, Gate, MEXC) and destroyed, and the Foundation is actively coordinating with remaining exchanges. The network was restored on December 29, 2025, via an Isolated Recovery Plan that preserves all legitimate transaction history. This approach was selected following ecosystem-wide consultation with exchanges, bridge operators, and infrastructure partners. The Isolated Recovery Plan was chosen specifically to avoid reconciliation risk for off-chain custodial systems and cross-chain protocols maintaining independent state. The Foundation is cooperating with blockchain forensic partners including zeroShadow and Find Labs and relevant law-enforcement authorities to support ongoing investigations. Full technical details of the vulnerability, exploit mechanism, forensic analysis, and remediation architecture are linked in the comment.

UPDATE: FLOW NETWORK FULLY OPERATIONAL - CADENCE AND EVM ENVIRONMENTS LIVE This milestone marks the completion of one of the most complex recovery operations in blockchain history. What was initially projected as a sequential, multi-day process has been executed in parallel, restoring both Cadence and EVM functionality while maintaining surgical precision in removing fraudulent assets and preserving legitimate transaction history. NETWORK STATUS: BOTH EXECUTION ENVIRONMENTS OPERATIONAL ✅ Cadence VM: LIVE ✅ Flow EVM: LIVE ✅ Phase 2 cleanup: Continuing in parallel with full network operation 🔄 Account restoration: Ongoing as individual verification completes 🔄 Fraudulent token remediation: In progress via transparent on-chain transactions Over 99.9% of accounts have full operational access across both Cadence and EVM environments. ECOSYSTEM RESTORATION IN PROGRESS DeFi ecosystem on Flow is resuming operations: Live: @KittyPunch_xyz and @IncrementFi DEXs are operational and processing transactions Resuming: Bridge partners are actively working on restoration protocols and expect to resume operations following final verification TECHNICAL POST-MORTEM A comprehensive technical post-mortem detailing the complete attack vector, forensic analysis and remediation approach will be published within 48 hours. NEXT STEPS → Cadence & EVM: Both environments operational, final account remediation ongoing → DeFi Protocols: Continuing staged resumption as verification completes → Bridge/exchange resumption at operator discretion → Phase 4: Complete ecosystem restoration expected this week The network is secure, operational, and processing transactions across both execution environments. Technical implementation details available in the Flow Network Recovery: Technical Implementation Plan ↓ docs.google.com/document/d/1…

UPDATE: FLOW NETWORK IS LIVE - PHASE 1 OPERATIONAL The Flow network has successfully transitioned to Phase 1 operational status at 6am PT. CURRENT STATUS: PHASE 1 ACTIVE ✅ Cadence environment: Operational ✅ Network producing blocks and processing transactions ✅ Over 99.9% of accounts: Full functionality restored 🔄 EVM environment: Temporarily restricted (read-only mode) 🔄 Suspected impacted accounts: Temporarily restricted pending remediation WHAT THIS MEANS Users can now resume normal activity on the Cadence environment. The network is stable, secure, and processing transactions as expected. The EVM environment remains in read-only mode during the remediation process and will be restored in Phase 3 following Cadence cleanup verification. ACKNOWLEDGMENTS This restoration was made possible through extraordinary collaboration across the Flow ecosystem. The Foundation extends its gratitude to: → Node operators and validators for their swift consensus and deployment coordination → Bridge operators for their technical consultation and patient coordination during the review process → Exchanges for their infrastructure alignment and partnership throughout remediation planning → DEXs and ecosystem partners for their feedback that shaped this approach The unified response from the Flow community has been exceptional. This collaborative effort demonstrates the strength and resilience of decentralized infrastructure when ecosystem participants work together toward a common goal. NEXT STEPS → Phase 2: Cadence remediation ongoing (24-48 hours) → Phase 3: EVM restoration following Cadence verification → Phase 4: Bridge/exchange resumption at operator discretion → Next status update: Within 24 hours on Phase 2 progress The list of suspected incident impacted wallets is contained in the Flow Network Recovery: Technical Implementation Plan ⤵️ docs.google.com/document/d/1…

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💡We invented a new asset class with digital collectibles. Now, we're building the future of finance. @dapperlabs Co-Founder & CEO @roham joins #GenC to discuss the strategic expansion from digital collectibles to Peak Money. He details how Agentic AI and programmatic DeFi will empower the new tokenized creator economy, where every major fan community and social platform will run its own internal economy. 📺 Watch the full episode here: youtu.be/p9X4KMCXvsE Thank you @MidnightNtwrk 👋 for being a sponsor of the CoinDesk Media Network.