Flow Foundation Addresses Exchange Coordination Following Vulnerability Incident

According to ChainCatcher, the Flow Foundation has issued a statement regarding the coordination with exchanges following a vulnerability incident. The foundation has collaborated with forensic agencies and several global exchanges to protect users and restore network operations. The foundation reported that shortly after the incident, a single account deposited approximately 150 million FLOW tokens, representing about 10% of the total supply, into one exchange. A significant portion of these tokens was converted into BTC, and over $5 million was withdrawn within hours before the network interruption. This process exposed flaws in AML/KYC procedures and transferred financial risk to users who unknowingly purchased fraudulent tokens. Forensic analysis also revealed significant trading anomalies in the exchange's FLOW market before and after the incident, which did not align with normal trading patterns. The foundation's requests for clarification on these trading patterns through operational channels have gone unanswered.