🔥 BitDegree partnered with Ogvio - a free international money transfer service! Sign up now & grab Rewards! 🎁

Flow Faces Trust Crisis: Validators Urged to Halt After Chain Rollback

Key Takeaways

  • Alex Smirnov asked Flow validators to pause transactions until a user recovery plan is set following a proposed blockchain rollback;
  • The rollback plan followed a $3.9 million exploit, which raised concerns about how users’ balances would be restored after the theft;
  • Smirnov warned that reversing transactions could harm users, bridges, and exchanges more than the initial Flow network breach.

Stop overpaying - start transferring money with Ogvio. Sign up, invite friends & grab Rewards now! 🎁

Flow Faces Trust Crisis: Validators Urged to Halt After Chain Rollback

Alex Smirnov, founder of deBridge, has called on validators on the Flow FLOW $0.0958 network to stop confirming transactions until a clear recovery plan is created for users affected by a recent rollback proposal.

The rollback idea came after about $3.9 million was stolen on December 27. The theft occurred when a hacker exploited a weakness in Flow’s execution layer and moved the funds through several cross-chain bridges.

deBridge, one of the main bridge providers for Flow, raised concerns about how balances would be handled for users who transferred assets out of the chain during the rollback period.

Is Your Crypto Safe? (5 Best Crypto Security Practices Explained)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Smirnov urged the Flow Foundation to explain how these double-counted balances would be corrected.

Despite this request, validators have not yet stopped operations. Data from Flowscan shows that the network has been frozen at block height 137,385,824 since 11:24 PM UTC on December 27. Around that time, the Flow Foundation said it expected the blockchain to be operational again within 4 to 6 hours.

Smirnov argued that Flow did not inform partners in the ecosystem before deciding to roll back the chain. He warned that undoing recent transactions could harm users and service providers more than the original security breach itself. He explained:

A rollback introduces systemic issues that affect bridges, custodians, users, and counterparties who acted honestly during the affected window.

He also pointed out that crypto exchanges handling the Flow token could face complications in managing deposits and withdrawals made during the disputed period.

Recently, the Solana SOL $125.45 network faced a large distributed denial-of-service (DDoS) incident. What did Solana co-founder Anatoly Yakovenko say? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

Loading...
binance
×
Verified

ZERO FEES

For Ogvio Money Transfers
Rating
5.0