Flow Foundation: An Exchange Engaged in Abnormal Trading During FLOW Security Incident, Transferring Risk to Users
7x24h News
Flow Foundation: An Exchange Engaged in Abnormal Trading During FLOW Security Incident, Transferring Risk to Users
Flow posted on Twitter that shortly after the attack, a single account on a certain exchange deposited approximately 150 million FLOW (about 10% of the total supply) and exchanged part of it for BTC, then withdrew over $5 million within a few hours before the network was shut down. This process exposed flaws in the AML/KYC procedures and transferred financial risks to users who unknowingly purchased the tokens. Forensic analysis also revealed significant trading anomalies in the exchange's FLOW market before and after the incident, which were inconsistent with normal trading patterns. The foundation's requests for clarification regarding these trading patterns through operational channels received no response.
Navigating Web3 tides with focused insightsAccording to Deep Tide TechFlow, on January 1st, Flow tweeted that shortly after the attack incident, a single account on a certain exchange deposited approximately 150 million FLOW tokens (about 10% of the total supply) and converted some of them into BTC. Subsequently, within a few hours before the network interruption, over $5 million in funds were withdrawn. This process exposed flaws in the AML/KYC procedures and transferred financial risks to users who unknowingly purchased the tokens. Forensic analysis also revealed significant trading anomalies in the exchange's FLOW market before and after the incident, which were inconsistent with normal trading patterns. The foundation's requests for clarification regarding these trading patterns through operational channels received no response.
