A Flow network outage caused defaults in NFT lending, and Flowty has suspended loan settlements.
TL;DR
A Flow network outage after a December 27th attack disrupted NFT lending repayments, causing defaults. Flowty suspended loan settlements, with 8 of 11 matured loans defaulting and core functions still restricted.
Tags
[Flow Network Outage Causes NFT Lending Defaults; Flowty Suspends Loan Settlement] According to Mars Finance, Abdelaziz Fathi's monitoring indicates that the Flow network outage following an attack on December 27th disrupted the Repayment function of the NFT lending protocol within the Flow ecosystem, forcing multiple matured loans into default. The Flow Foundation had previously suspended the Cadence execution environment until the morning of December 29th. Flowty stated on its X platform that a total of 11 loans matured during the outage, of which 8 have already defaulted, and 2 failed to settle due to account restrictions. Although Flow has returned to online status, core functions such as token exchange remain restricted, and borrowers cannot access the assets needed for repayment. Flowty suspended settlement of all loans 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.