Following the security incident on December 27th, issues within the FLOW ecosystem have gradually surfaced.

According to an investigation by Flow Foundation, shortly after the incident occurred, a certain exchange exhibited obvious anomalies—one account deposited approximately 150 million FLOW tokens in a short period (which accounts for 10% of the total supply), then exchanged some for BTC, and within a few hours before the network pause, withdrew over $5 million in a single transaction. This operation raises serious suspicions.

What further worries the foundation is that the entire process exposed a serious problem: severe deficiencies in AML and KYC controls. Large abnormal transfers that should have been effectively intercepted and verified occurred as they were, ultimately harming ordinary market participants who had no idea what was happening.

Forensic agencies conducted in-depth analysis and found that the FLOW trading market on the involved exchange behaved abnormally before and after the incident—trading patterns clearly deviated from normal levels and looked suspicious. However, when Flow Foundation requested explanations through normal channels, the response was... no response.

The core issue revealed by this incident is very painful: risk control vulnerabilities are not isolated to a single exchange but represent a systemic risk that the current ecosystem must face.