Flow Foundation Investigates Security Incident as FLOW Coin Plummets Over 50%
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Security Incident Investigation: The Flow Foundation announced an investigation into a potential security incident affecting the Flow network, which caused the FLOW coin to plummet over 50% within hours, bottoming out at approximately $0.92 before slightly recovering to $0.1167, indicating high market sensitivity to security issues.
- Attack Pattern Analysis: Blockchain analyst Wazz highlighted that the attacker minted millions of wrapped FLOW (WFLOW) using the TransparentUpgradeableProxy contract from a wallet created about six months ago, estimating losses around $4 million, suggesting a risk of private key compromise rather than a smart contract vulnerability.
- Transaction Suspension Measures: Major South Korean cryptocurrency exchanges Upbit and Bithumb promptly halted deposits and withdrawals of FLOW coin, while the Digital Asset Exchange Alliance (DAXA) issued a transaction risk alert, indicating potential further trading restrictions, which severely undermines market confidence in FLOW coin.
- Increased Market Pressure: As the NFT market cools, the Flow ecosystem continues to face ongoing pressure, with Dapper Labs conducting multiple rounds of layoffs since 2022, highlighting the challenges faced by a company that was once valued at $7.6 billion in 2021.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
