BlockBeats News, January 1st: The Flow Foundation has issued a statement regarding the coordination work of the trading platforms after the December 27th exploit incident. Since the event, the Flow Foundation and its forensic partners have collaborated with global exchanges to protect users and restore operations, with Kraken, Coinbase, and Upbit as partners, of which Kraken has resumed services.
The Flow Foundation has expressed concerns about how a certain exchange platform handled this incident. Within hours of the exploit, a single account deposited 150 million FLOW tokens, approximately 10% of the token’s total supply, into the exchange. Subsequently, a significant portion was exchanged for BTC, and over $5 million was withdrawn in the few hours before the network was paused. This transaction pattern indicates flaws in the exchange platform’s Anti-Money Laundering/Know Your Customer (AML/KYC) processes and shifted the financial risk to users who unwittingly purchased fraudulent tokens.
Forensic analysts have found significant deviations from normal market behavior in trades on the FLOW trading pairs on this exchange both before and after the network pause. Multiple requests for explanations regarding these trading patterns through official channels have gone unanswered.
