PANews reported on January 1 that Flow Foundation issued a statement regarding the collaboration with exchanges following the vulnerability on December 27. They have been working with forensic agencies and several global exchanges to protect users and restore network operations. The organization stated that immediately after the incident, a single account sent approximately 150 million FLOW (, about 10% of the total supply ), to a single account, converting a significant portion into BTC and then withdrawing over $5 million within hours before the network went down. This process exposed flaws in AML/KYC procedures and transferred financial risks to users who inadvertently purchased fraudulent tokens. Forensic analysis also revealed that the exchange's FLOW market exhibited significant abnormal trading activity before and after the incident, inconsistent with normal trading patterns, and the organization's requests for clarification on these trading patterns through operational channels went unanswered.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
PANews reported on January 1 that Flow Foundation issued a statement regarding the collaboration with exchanges following the vulnerability on December 27. They have been working with forensic agencies and several global exchanges to protect users and restore network operations. The organization stated that immediately after the incident, a single account sent approximately 150 million FLOW (, about 10% of the total supply ), to a single account, converting a significant portion into BTC and then withdrawing over $5 million within hours before the network went down. This process exposed flaws in AML/KYC procedures and transferred financial risks to users who inadvertently purchased fraudulent tokens. Forensic analysis also revealed that the exchange's FLOW market exhibited significant abnormal trading activity before and after the incident, inconsistent with normal trading patterns, and the organization's requests for clarification on these trading patterns through operational channels went unanswered.