Flow Foundation expresses concerns about the deficiencies in the AML/KYC processes of a certain exchange

Flow Foundation issued a statement regarding the exchange coordination work after the exploitation incident. Since the incident occurred, Flow Foundation and its forensic partners have been working with global exchanges to protect users and restore operations, with Kraken, Coinbase, and Upbit as partners, and Kraken has resumed services.

Flow Foundation expressed concerns about the way a certain exchange handled the incident. Within hours of the exploit, a certain account deposited 150 million FLOW (approximately 10% of the total supply), exchanged most of the tokens for BTC, and withdrew over $5 million before the network halted. Flow Foundation believes that this trading pattern indicates flaws in the AML/KYC processes. Legal analysts found significant trading anomalies both before and after the network interruption at the exchange, and Flow Foundation's requests for clarification through operational channels went unanswered. They are now urgently calling for a meeting with the highest decision-making body of the exchange to resolve the issue. Currently, Flow Foundation is cooperating with law enforcement in the investigation.