Flow Foundation, a trading platform has flaws in its AML/KYC processes

The Flow Foundation issued a statement regarding the coordination efforts of trading platforms following the vulnerability attack incident.

Since the incident occurred, the Flow Foundation and its forensic partners have been collaborating with global trading platforms to protect users and restore operations, with Kraken, Coinbase, and Upbit as partners, and Kraken has resumed services. The Flow Foundation expressed concern about the way a certain trading platform handled this incident. Within hours of the vulnerability being exploited, a single account deposited 150 million FLOW into that trading platform, accounting for approximately 10% of the total token supply, and subsequently exchanged a significant portion of it for BTC, withdrawing over 5 million dollars in funds within just a few hours before the network was paused. This trading pattern indicates flaws in the trading platform's anti-money laundering/know your customer (AML/KYC) processes, transferring financial risk to users who unknowingly purchased fraudulent tokens. Forensic analysts have found significant deviations from normal market behavior in trading anomalies on the FLOW trading pair both before and after the network was paused. Explanations for these trading patterns have been requested multiple times through operational channels, but no response has been received.