Flow Foundation disclosed a security incident occurring on December 27th, where attackers discovered and exploited a vulnerability in the network's execution layer. The breach resulted in approximately $3.9 million being transferred off-chain before the validator network intervened and halted operations to contain the damage. Despite the incident's severity, the foundation emphasized that user account balances were not compromised—all customer deposits remain fully secured and intact. The swift action by validators in shutting down operations prevented further unauthorized asset movements.