Flow Foundation Issues Statement: Exchange Risk Control Vulnerability Needs Improvement

Flow Foundation recently issued a new statement regarding the significant security incident on December 27, expressing concerns about the risk control issues exposed during the response process. Since the incident, Flow Foundation has been working closely with multiple exchanges worldwide to protect user assets to the greatest extent and restore normal platform operations.

**Risk Control Vulnerability Comes to Light**

According to incident tracking records, the hacker account deposited 150 million FLOW tokens within just a few hours after the vulnerability occurred. Subsequently, the account quickly converted most of the tokens into BTC and successfully withdrew over $5 million. This series of operations indicates clear flaws in the AML (Anti-Money Laundering) and KYC (Know Your Customer) processes of certain exchanges.

**Flow Foundation Calls for High-Level Meetings**

After the incident was exposed, Flow Foundation expressed deep concern over the exchange’s response. To fundamentally resolve the issue, Flow Foundation has officially called for face-to-face meetings with the exchange’s top decision-makers to promote the establishment of a more comprehensive risk control mechanism and prevent similar incidents from happening again.

At the same time, Flow Foundation is cooperating with law enforcement agencies to conduct investigations, aiming to recover the transferred assets and hold responsible parties accountable. This incident also serves as a reminder to the entire industry that strengthening the risk control systems of exchanges has become an urgent priority.