Flow Foundation opens investigation after FLOW token plummets 40% in a few hours

2025-12-29 01:31:10

Source: PortaldoBitcoin Original Title: Flow Foundation opens investigation after FLOW token plummets 40% in a few hours Original Link: The Flow Foundation has launched an investigation to determine a possible security incident on the Flow blockchain, according to a statement published on Saturday (27), after the network’s native token, FLOW, dropped over 40% in a few hours. Between 6:00 AM and 10:00 AM on Wednesday, the asset fell from $0.17 to $0.10.

In the statement, the foundation said it is investigating “a possible security incident affecting the network” and that its engineering teams are working together with partners to mitigate the issue.

On-chain analyst known as Wazz was the first to identify signs of the attack shortly after the sharp price drop of the token. According to his analysis, approximately $4 million had been stolen.

The alleged attacker used a wallet created about six months ago to mint millions of encapsulated FLOW tokens (WFLOW) through a TransparentUpgradeableProxy contract, suggesting a possible private key breach rather than a direct smart contract vulnerability.

Security expert Taylor Monahan stated that the attacker managed to mint not only WFLOW but also WBTC, WETH, and stablecoins. “It appears that about $3.9 million was lost, and all pools and bridges are currently paused,” he said.

Following the incident, the price of FLOW dropped from around $0.17 to $0.10, while trading volume surged to over $170 million in 24 hours. South Korean exchanges suspended deposits and withdrawals of the token, and DAXA, the association of the country’s major exchanges, issued a formal “transaction risk” alert.

At the time of this publication, Flow is trading at $0.11, down 35% in the last 24 hours.

Developed by Dapper Labs, Flow is a layer-one blockchain focused on consumer applications and NFTs, such as NBA Top Shot and CryptoKitties. The episode occurs in a year marked by record-breaking attacks in the crypto sector.

FLOW-1,85%

WBTC-3,02%

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