PANews reported on January 1st that the Flow Foundation issued a statement regarding its coordination with exchanges following the December 27th vulnerability incidentPANews reported on January 1st that the Flow Foundation issued a statement regarding its coordination with exchanges following the December 27th vulnerability incident

Flow: An exchange exhibited abnormal trading activity during the FLOW security incident, shifting the risk to users.

2026/01/01 08:08

PANews reported on January 1st that the Flow Foundation issued a statement regarding its coordination with exchanges following the December 27th vulnerability incident. The foundation stated that it has collaborated with forensic agencies and multiple global exchanges to protect users and restore network operations. The foundation stated that shortly after the incident, a single account on one exchange deposited approximately 150 million FLOW tokens (about 10% of the total supply) and exchanged a significant portion of them for BTC. Subsequently, in the hours before the network outage, over $5 million was withdrawn. This process exposed flaws in the AML/KYC process and transferred financial risk to unsuspecting users who purchased fraudulent tokens. Forensic analysis also revealed significant trading anomalies in the exchange's FLOW market before and after the incident, inconsistent with normal trading patterns. The foundation's requests for clarification regarding these trading patterns through operational channels went unanswered.

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