Upbit Designates FLOW as Investment Warning Amid Hacker Attack Risks

Upbit Designates FLOW as Investment Warning Amid Hacker Attack Risks

Following a major exploit involving 150 million FLOW tokens, Flow Foundation cites AML/KYC concerns while working with exchanges and law enforcement to address security issues.

BTC
FLOW

Fact Check
The assessment is 'likely_true' with high confidence based on strong, consistent evidence from multiple sources. The most critical piece of evidence comes from a highly authoritative source, The Block, which directly reports that the Upbit exchange suspended deposits for FLOW specifically because of a security incident. Suspending deposits is a concrete, formal action taken by an exchange to protect its users from risks associated with an asset, which is functionally equivalent to or a component of an 'Investment Warning'.This central claim is heavily corroborated by several other sources. Another report from The Block, as well as analyses from a crypto security firm and a news aggregator, all confirm that a severe, multi-million dollar hack or exploit occurred on the Flow network. This establishes a clear and credible motive for Upbit's action, directly supporting the "because of risks related to hacker attacks" part of the statement.There is no conflicting evidence among the provided sources. While some sources are irrelevant or have low authority, none of them contradict the core claims. The slight ambiguity lies only in the precise terminology—'suspending deposits' versus 'designating as an Investment Warning'—but the substance and intent of the action reported are the same. Therefore, the evidence overwhelmingly supports the truthfulness of the statement.
    Reference12
Summary

Upbit continues to classify FLOW as an investment warning until Jan 14, 2026 after halting deposits and withdrawals on Dec 27, 2025 due to a large-scale exploit. Flow Foundation reported AML/KYC deficiencies linked to a 150 million FLOW deposit (~10% of token supply), with over $5 million withdrawn and most funds converted to BTC before the network halt. Kraken, Coinbase and Upbit cooperated in related security measures, Kraken has since restored service, and Flow Foundation is engaging with law enforcement and seeking leadership discussions on the incident.

Terms & Concepts
  • Investment warning: A formal alert issued by an exchange or regulator indicating that an asset may carry significant risks, advising caution for investors.
  • AML/KYC: Anti-Money Laundering and Know Your Customer, regulatory processes to prevent illicit financial activity and verify customer identities.
  • Exploit: A security breach where vulnerabilities are used to gain unauthorized access or control over funds or systems.