Flow: $5 million withdrawn due to AML/KYC process flaws at an exchange

According to Odaily, the Flow Foundation has issued a statement regarding exchange coordination efforts following the vulnerability exploit incident on December 27. Since the incident, the Flow Foundation and its forensic partners have been working with global exchanges to protect users and restore operations. One exchange is a partner, and another exchange has resumed services.

The Flow Foundation expressed concerns about how one exchange handled the incident. Within hours after the vulnerability occurred, an account deposited 150 million FLOW (approximately 10% of the total supply), converted most of the tokens to BTC, and withdrew over $5 million before the network was halted. The Flow Foundation believes this transaction pattern indicates flaws in the AML/KYC process. Legal analysts found significant transaction anomalies at the exchange both before and after the network interruption. The Flow Foundation requested clarification through operational channels but received no response, and now urgently calls for a meeting with the exchange’s top decision-makers to resolve the issue. The Flow Foundation is currently cooperating with law enforcement in the investigation.