Flow Network Outage Causes NFT Loan Defaults, Flowty Suspends Loan Settlements

According to monitoring by Abdelaziz Fathi, due to the Flow network outage following an attack on December 27th, the Repayment function of NFT lending protocols within the Flow ecosystem was disrupted, forcing multiple matured loans into default. The Flow Foundation had previously suspended the Cadence execution environment until the morning of December 29th.

Flowty posted on platform X, stating that a total of 11 loans matured during the outage. Among them, 8 have directly defaulted, and another 2 failed to settle due to account restrictions. Although Flow is back online, core functions such as token swaps remain limited, preventing borrowers from accessing the assets needed for repayment. Flowty has suspended settlements for all loans starting from 14:15 on December 30th. Loans maturing during this period will neither be repaid nor defaulted. The current price of Flow is approximately $0.086.