Flow reveals December exploit causing $3.9 million losses from counterfeit tokens

On December 27, 2022, an attacker exploited a vulnerability in Flow’s protocol. This flaw allowed token duplication instead of minting, leading to losses of approximately 3.9 million USD. The network quickly responded by halting operations.

Flow paused the network to manage the issue and preserved legitimate transactions. Governance approved the destruction of counterfeit assets while ensuring that no user balances were compromised during this process.