TLDR
- Binance removed the FLOW/BTC pair and eight others after recent token reviews.
- FLOW was added to Binance’s monitoring tag list with three other tokens.
- A $3.9M exploit on the Flow blockchain led to hacker fund conversions.
- Flow blamed an AML/KYC failure by an unnamed exchange after the hack.
Cryptocurrency exchange Binance has announced the delisting of nine spot trading pairs, including FLOW/BTC, following a $3.9 million exploit on the Flow blockchain. The exchange also added FLOW and three other digital assets to its monitoring tag list, indicating increased risk and potential compliance concerns.
Binance stated these changes came after a review process, though the company did not directly link the move to the Flow exploit. The timing of the decision has drawn attention from the crypto community as Flow continues to manage the aftermath of the security incident.
FLOW Added to Binance Monitoring List
In a separate notice, Binance included FLOW under its monitoring tag, which the exchange uses for assets that show high price volatility or pose higher risk than other tokens. This tag warns users that such tokens may no longer meet the platform’s listing criteria in the future.
According to Binance, the FLOW/BTC pair and eight others were removed to protect users and maintain a high-quality trading environment. The FLOW/USDT pair, however, remains active on the platform. The inclusion of FLOW on the watchlist means it will undergo more frequent review and may require users to pass quizzes before trading the asset.
Alongside FLOW, Binance added three other tokens to the list, but did not give specific reasons for each addition. The exchange maintained that the changes followed its ongoing token monitoring and compliance review process.
$3.9 Million Exploit and Flow’s Response
The Flow Foundation confirmed a $3.9 million exploit last week involving the unauthorized conversion and withdrawal of stolen FLOW tokens. The tokens were reportedly moved through an exchange due to what Flow described as an “AML/KYC failure.”
Flow did not name the exchange involved but expressed concern about how it handled the hacker activity. In its preliminary post-mortem, Flow stated, “The failure of an exchange to enforce proper anti-money laundering and know-your-customer protocols allowed the attacker to move funds.”
Some community members speculated that the unnamed platform could be Binance, although there has been no confirmation. Binance has not publicly addressed these allegations, and the connection remains unclear.
Flow Cancels Rollback Plan and Moves Toward Recovery
Initially, the Flow Foundation proposed a full blockchain rollback to reverse the effects of the exploit. However, the idea faced backlash from users who were concerned about decentralization and transaction integrity. As a result, the plan was withdrawn.
Flow has instead implemented a recovery strategy that involves restoring blockchain services and isolating fraudulent assets. According to the latest update, both Cadence and EVM environments are operational again. The foundation said it used a parallel process to restore functionality while preserving legitimate user transactions.
Flow expects to release a full post-mortem report and complete its recovery plan soon. The remaining steps include user account restorations and the removal of unauthorized tokens from the network.
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