Flow: A certain exchange's AML/KYC process had a flaw, and after the vulnerability was exploited, a certain account received 150 million FLOW tokens and promptly cashed out, withdrawing over $5 million.

BlockBeats News, January 1st, the Flow Foundation issued a statement regarding the coordinated efforts of exchanges after the December 27th exploit incident. Since the incident, the Flow Foundation and its forensic partners have collaborated with global exchanges to protect users and resume operations, with an exchange as partners, of which an exchange has resumed services.

The Flow Foundation expressed concern over the handling of the incident by a certain exchange. Within hours of the exploit, a single account deposited 150 million FLOW tokens, approximately 10% of the total token supply, into the exchange, proceeded to convert a significant portion to BTC, and withdrew over 5 million USD in funds in the brief window before the network pause. This transaction pattern indicates a flaw in the exchange's Anti-Money Laundering/Know-Your-Customer (AML/KYC) processes, shifting financial risk onto users who unwittingly purchased the fraudulent tokens.

Forensic analysts have identified significant deviations from normal market behavior in FLOW trading pairs on the exchange both before and after the network pause. Requests for explanations on these transaction patterns through official channels have gone unanswered.