The Flow Foundation is actively working on a remediation plan following a $3.9 million blockchain exploit, focusing on large token movements on a centralized exchange. Flow has made significant progress in recovery, entering phase two to restore EVM functionality and address its non-EVM chain, Cadence. All activity is publicly auditable on-chain.
Flow scrapped a proposed plan that included a blockchain rollback due to user backlash over decentralization and security risks. The Foundation expressed concern over an unnamed exchange’s handling of the incident, where a single account deposited 150M $FLOW, converted to BTC, and withdrew over $5M in hours. The pattern highlighted AML/KYC failures.
Trust Wallet reported a Christmas Day exploit in its browser extension resulting in $7 million in losses. Former Binance CEO Changpeng Zhao assured coverage for affected wallet addresses. As of Monday, 2,596 compromised addresses were identified, with about 5,000 reimbursement claims received. Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026.
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1. Bitcoin hits new all-time high of $63,000, surpassing previous record set in April. The cryptocurrency’s market cap now exceeds $1.1 trillion, with analysts pointing to increased institutional adoption as a key driver of the surge.
2. Ethereum also reaches new peak of $2,500, marking a 200% increase in value since the beginning of the year. The second largest cryptocurrency by market cap has seen a surge in decentralized finance (DeFi) activity and NFT trading.
3. Tesla announces plans to accept Bitcoin as payment for its vehicles, citing increased demand from customers looking to use the digital currency for transactions. CEO Elon Musk’s endorsement of Bitcoin has been a major catalyst for its recent price rally.
4. PayPal introduces new feature allowing US customers to pay with Bitcoin, Ethereum, Litecoin, and Bitcoin Cash at millions of online merchants. The move is seen as a significant step towards mainstream adoption of cryptocurrencies for everyday transactions.
5. Coinbase, the largest cryptocurrency exchange in the US, goes public with a direct listing on the Nasdaq. The company’s valuation surpasses $100 billion, making it one of the most valuable financial firms in the world and highlighting the growing interest in digital assets.: Flow Remediation Plan to $3.9M Exploit Continues with EVM Progress