Flow blockchain probes security incident as FLOW token plunges over 40%
A potential security incident on the Flow blockchain caused the FLOW token to drop over 40%, prompting exchange suspensions.Summary
The Flow Foundation is investigating a potential security incident affecting its Layer 1 blockchain, leading South Korean exchanges like Upbit and Bithumb to halt FLOW token transfers. The FLOW token experienced a significant price drop, plummeting over 40% to around $0.10, with trading volume surging to over $170 million. Initial analysis suggests approximately $4 million was stolen through the minting of wrapped FLOW (WFLOW) tokens, potentially due to a private key compromise. Security expert Taylor Monahan reported that multiple pools and bridges have been paused. The incident occurs amidst a record year for crypto security breaches, with private key compromises being a major attack vector. Flow, developed by Dapper Labs, has faced challenges in recent years as the NFT market cooled, and Dapper Labs has undergone multiple rounds of layoffs.
(Source：The Block)