Flow Foundation: A certain exchange exhibited abnormal trading activity during the FLOW security incident, shifting the risk to users.
TL;DR
An exchange account deposited 150 million FLOW tokens post-attack, converting some to BTC and withdrawing over $5 million before a network outage, exposing AML/KYC flaws and shifting risk to users. Trading anomalies were observed, with the foundation's inquiries unanswered.
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According to Foresight News , Flow tweeted that shortly after the attack, a single account on an exchange deposited approximately 150 million FLOW tokens (about 10% of the total supply) and exchanged some of them for BTC. Then, in the hours before the network outage, over $5 million was withdrawn. This process exposed flaws in the AML/KYC process and shifted financial risk to unsuspecting users who purchased the tokens. Forensic analysis also revealed significant trading anomalies in the exchange's FLOW market before and after the incident, inconsistent with normal trading patterns. Requests for clarification regarding these trading patterns submitted by the foundation through operational channels went unanswered.