On January 1, the Flow Foundation issued a statement regarding its coordination efforts with trading platforms following the December 27 vulnerability attack. Since the incident, the Flow Foundation and its forensic partners have collaborated with global trading platforms to protect users and restore operations, including Kraken, Coinbase, and Upbit. Kraken has already resumed service.
The Flow Foundation has expressed concern over the handling of this incident by a certain trading platform. Within hours of the vulnerability being exploited, a single account deposited 150 million FLOW tokens into the platform, representing approximately 10% of the total token supply. A significant portion of these were subsequently exchanged for BTC, and over $5 million was withdrawn in the short hours before the network was suspended. This trading pattern indicates flaws in the platform's Anti-Money Laundering/Know Your Customer (AML/KYC) processes, shifting financial risk to unsuspecting users who purchased fraudulent tokens.
Forensic analysts have discovered that the trading platform exhibited significant deviations from normal market behavior on the FLOW trading pair both before and after the network suspension. Multiple requests for explanations regarding these trading patterns have been made through operational channels, but no response has been received.
