Wu said that the Flow Foundation stated that after the security incident on December 27, 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 certain exchange experienced abnormal activity where a single account deposited approximately 150 million FLOW tokens (about 10% of the total supply), some of which were exchanged for BTC and over 5 million USD was withdrawn within a few hours before the network was paused. It is believed that this process exposed deficiencies in AML/KYC controls, and the related risks were transferred to unsuspecting market participants. Forensic analysis also found that the FLOW market on that exchange exhibited abnormal trading patterns inconsistent with normal trading before and after the incident, but the foundation's requests for explanations through existing channels went unanswered.