According to BlockBeats, Flow has released an update regarding a recent attack, stating that the foundation is working with key infrastructure partners to finalize the best restart plan. The recovery strategy has been distributed to ecosystem partners and is currently under evaluation. This includes active discussions with bridge operators, trading platforms, and verification institutions. The next technical steps are being verified and are ready for deployment. The next status update is scheduled for 6 PM Pacific Time.

According to Odaily, the Flow Foundation has released an official update regarding a security breach that occurred on December 27, 2025. Attackers exploited a vulnerability in the Flow execution layer, transferring approximately $3.9 million worth of assets off-chain before validators coordinated a shutdown. The foundation assured that no existing user balances were affected, and all user deposits remain intact. The stolen funds were primarily moved through a cross-chain bridge, and the attacker's address has been identified and flagged. Efforts to trace the laundering paths are ongoing, and requests to freeze the assets have been submitted to Circle, Tether, and major exchanges. The foundation stated that the network has been isolated, and a fix for the vulnerability has been released, currently undergoing verification and deployment. To remove unauthorized transactions, the network will roll back to a checkpoint before the attack, requiring legitimate transactions submitted during the period to be resubmitted after the restart. Based on feedback from validators and ecosystem partners, the foundation has decided to extend the coordination time to ensure network consensus and long-term security. The network will not be hastily restarted until thorough consultations are completed. User funds remain secure throughout the process, and updates will continue to be released according to the established schedule.

The Flow Foundation released an official update stating that on December 27, 2025, attackers exploited a vulnerability in the Flow execution layer to transfer approximately $3.9 million in assets off-chain before validators coordinated a shutdown. The Foundation emphasized that this incident did not affect any users' existing balances, and all user deposits remain intact. The outflow of funds primarily occurred via cross-chain bridges. The attacker's address has been identified and flagged, and the related money laundering path is being tracked in real-time. Freezing requests have been submitted to Circle, Tether, and major exchanges. The Foundation stated that the network has been isolated, and the vulnerability fix has been released and is in the verification and deployment phase. To remove unauthorized transactions, the network will roll back to the checkpoint before the attack occurred. Legitimate transactions submitted during this period will need to be resubmitted after the restart. Based on feedback from validators and ecosystem partners, the Foundation has decided to extend the coordination time to ensure network consensus and long-term security, and will not hastily restart before full consultation. User funds remain safe throughout the process, and updates will continue to be released according to the established schedule. Previous news: deBridge co-founder: Hasty Flow rollback may trigger greater systemic risks.

According to BlockBeats On-chain Detection, a major cryptocurrency holder recently withdrew substantial amounts of digital assets from a centralized exchange (CEX). Seven hours ago, the whale transferred 2,218 ETH, 37.1 million SKY, and 4,772 AAVE from the exchange. The wallet had previously received 519 ETH from Wintermute 19 days ago and currently holds a total of 2,738 ETH. The movements of these assets have attracted attention due to their significant value and potential impact on the market.

According to Onchain Lens monitoring, seven hours ago, a whale (0xcd9...5507) withdrew 2,218 ETH (US$6.52 million), 37.1 million SKY (US$2.36 million), and 4,772 AAVE (US$730,300) from Kraken. This address had previously received 519 ETH (US$1.62 million) from Wintermute 19 days prior. Currently, this address holds a total of 2,738 ETH, worth US$8.07 million.

Several industry executives have stated that digital asset vault companies (DATs) will face severe challenges as the market environment weakens, potentially leading to a large-scale shakeout within the industry. Altan Tutar, co-founder and CEO of MoreMarkets, pointed out that while a large number of DAT companies emerged in 2025, providing Wall Street investors with exposure to crypto assets, many companies' stock prices have fallen significantly after the market correction, resulting in a bleak overall outlook. Tutar believes that with increased competition, most crypto vault companies will struggle to survive, particularly those focused on altcoins, which may be the first to exit the market as their market capitalization is unlikely to consistently exceed their net asset value (mNAV) of crypto assets. He also stated that even vaults built around mainstream assets such as Ethereum, Solana, or XRP may face similar pressure subsequently. Ryan Chow, co-founder of Solv Protocol, added that the number of listed or quasi-listed companies holding Bitcoin will increase significantly in 2025, but "simply holding Bitcoin is not a sustainable growth model," and companies lacking revenue management capabilities may struggle to survive the next downturn. He pointed out that surviving vault companies typically view crypto assets as digital capital that generates returns and liquidity, rather than simply as a store of value. Furthermore, First Digital CEO Vincent Chok stated that crypto ETFs are becoming a significant competitor to DAT because they offer investors more compliant and transparent price exposure. He believes that for the crypto vault model to continue to develop, it needs to integrate more deeply with traditional financial infrastructure, approaching ETF standards in terms of compliance, auditing, and asset management. (Cointelegraph)

According to BlockBeats, Altan Tutar, co-founder and CEO of MoreMarkets, has expressed concerns about the future of most crypto treasury (DAT) companies by 2026. Tutar predicts a significant decline in the stock prices of many large treasuries. He highlights that cryptocurrency funds focusing on altcoins will be particularly vulnerable, as they struggle to maintain a company market value exceeding their cryptocurrency holdings. Tutar also suspects that flagship DATs like Ethereum, Solana, and XRP may soon face similar challenges.

The Flow Foundation has been slammed for rolling the layer 1 Flow chain back to patch up a $3. 9 million exploit, with one partner advising validators to stop processing transactions until further notice. source: https://cointelegraph.com/news/flow-validators-urged-halt-work-after-chain-rollback?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound

null source: https://x.com/BSCNews/status/2005436115596222594

On December 29th, spot gold fell below $4,500 per ounce, down 0.71% on the day. Spot silver saw a significant pullback, erasing over 6% of its intraday gains, and is currently down 2% at $77.3 per ounce. (Jinshi)

Grok, Elon Musk’s AI chatbot on X, has been praised by Vitalik Buterin for giving unpredictable responses that challenge users’ political biases and promote more truthful interactions.

A massive hack has struck Trust Wallet, one of the most widely used crypto wallets, resulting in estimated losses exceeding $6 million.

Italy’s competition authority has ordered Meta to allow rival AI chatbots on WhatsApp while investigating possible abuse of its dominant position. Meta plans to appeal, saying the policy protects its systems, but regulators worry it could limit competition and innovation in the AI market.

Nvidia has announced a $20 billion acquisition of Groq’s core assets, a landmark move that strengthens its already commanding position in the artificial intelligence chip market and reshapes the competitive landscape for AI infrastructure.

Keonne Rodriguez, co-founder of Samourai Wallet, began serving a five-year federal prison sentence and shared a personal account of his first days, describing the intake process and adjusting to prison life just before Christmas.

The Philippines has escalated its crackdown on unlicensed cryptocurrency platforms, with internet service providers beginning to block access to major global exchanges, signaling a decisive shift toward stricter enforcement of local crypto regulations.

Pudgy Penguins projected its animated characters on the Las Vegas Sphere for a week-long holiday campaign, promoting its physical products rather than NFTs. The display helped the crypto-born brand reach mainstream audiences, supporting merchandise sales and boosting recognition despite a struggling NFT market.

Kraken has officially launched the Krak Card, a Mastercard crypto debit card for residents living in the EU countries and the United Kingdom. The Krak card would allow users to spend more than 400 cryptocurrencies and fiat currencies seamlessly.

Trust Wallet confirmed a security incident affecting version 2.68 of its Chrome extension after users reported unauthorised wallet drains following a recent update. The company told users to disable the extension and upgrade immediately, saying its mobile app and other versions were not affected while the investigation continues.

Kyrgyzstan has taken another step toward embedding digital assets into its financial system after cryptocurrency exchange Binance listed the country’s first som-pegged stablecoin, a move that signals growing state-level confidence in blockchain-based payments and infrastructure.