Flow Foundationannounced on Saturday that it was working on a possible security incident affecting the Flow network. Following the announcement, South Korea’s major cryptocurrency exchanges altcoinWhile transfers were halted in , the price of FLOW coin dropped by over 50 percent within hours. While the altcoin dropped to approximately $0.92, it is trading at $0.1167 with some recovery at the time of writing.
Possible Trace of Attack: WFLOW Coin Minting via Proxy
According to the statement made by Flow Foundation on X, engineering teams are investigating a possible security incident that may affect the network and taking precautions in coordination with network partners. Inside blockchain analyst wazzImmediately after the price collapse, he brought up movements similar to the attack trace and shared a loss estimate of approximately 4 million dollars.
According to Wazz’s analysis, the attacker used a wallet created approximately six months ago. TransparentUpgradeableProxy millions using the contract wrapped FLOW (WFLOW) pressed. He stated that this model seems more compatible with the capture of the private key rather than a smart contract vulnerability.
Security expert who spoke to The Block via direct message Taylor Monahan He pointed out that the attacker was able to print bridged assets such as WBTC, WETH and stablecoins, as well as FLOW coin. Monahan stated that the loss appeared to be around $3.9 million and that all pools and bridges were paused.
South Korean Stock Exchanges Put the Brakes on, Risk Warning Issued
Following the announcement of the incident upbit And Bithumbsuspended FLOW coin deposits and withdrawals. Bringing together South Korea’s five largest cryptocurrency exchanges Digital Asset Exchange Alliance (DAXA) issued an official transaction risk warning for the coin. It was noted that additional protective steps could range from transaction restrictions to discontinuation of support.
Flow, Dapper Labs As a Layer-1 network developed by , it stood out with NFT projects such as NBA Top Shot and CryptoKitties, and was positioned with an architecture focused on consumer applications and digital collections. The network witnessed hundreds of millions of dollars of NFT transaction volume on a monthly basis during its peak in 2021.
NFT marketFollowing the cooling in Europe, the Flow ecosystem was under pressure. Dapper Labs, which reached a valuation of $ 7.6 billion in 2021, has carried out multiple rounds of layoffs starting from 2022.
