FLOW Crashes 40% as Experts Flag Possible $4M Exploit and Exchanges Halt Transfers

• FLOW plunges over 40% after experts flag suspected $4M exploit
• South Korean exchanges suspend FLOW transfers amid growing security concerns
• Analysts link token crash to possible private key compromise on Flow

A sharp selloff hit the FLOW token after reports emerged of a possible exploit on the Flow blockchain. The sudden drop erased more than 40% of the token’s value within hours. According to the Flow Foundation, the team is investigating a potential security incident affecting the network. The foundation said engineers are coordinating with partners to mitigate the issue and release verified updates.

Market reaction intensified after onchain analyst Wazz flagged suspicious activity tied to the crash, according to his findings. He estimated that nearly $4 million in assets were drained through irregular token minting.

Based on the analysis, the attacker allegedly minted millions of wrapped FLOW tokens via a Transparent Upgradeable Proxy contract. Wazz added that the wallet involved was created around six months ago, suggesting a private key compromise.

Also Read: Trust Wallet Hack Fallout as CEO Reveals Reimbursement Plan for Affected Users

Exchanges Freeze Activity as Onchain Evidence Points to Minting Abuse

According to security expert Taylor Monahan, the suspected exploit extended beyond a single asset. She told The Block that the attacker may have minted native FLOW and bridged tokens such as WBTC, WETH, and stablecoins. Additionally, Monahan said losses stood close to $3.9 million while liquidity pools and bridges were paused. These steps were taken to prevent further damage across the ecosystem.

FLOW traded near $0.10 later in the day, down from roughly $0.17 earlier. Consequently, trading volume jumped above $170 million as selling pressure intensified.

South Korean exchanges responded swiftly following the disclosure. Upbit and Bithumb suspended FLOW deposits and withdrawals to shield users from further risk. Moreover, the Digital Asset Exchange Alliance issued a formal transaction risk warning for the token. The group said member exchanges could impose additional measures depending on how the situation unfolds.

Flow’s Broader Struggles Resurface Amid Rising Crypto Security Losses

Flow operates as a Layer 1 blockchain developed by Dapper Labs, best known for NFT platforms like NBA Top Shot. The network once processed hundreds of millions of dollars in monthly NFT trades during peak demand. However, cooling interest in digital collectibles has weighed heavily on the ecosystem. Dapper Labs, valued at $7.6 billion in 2021, has carried out several rounds of layoffs since 2022.

The Flow Foundation has yet to release detailed technical findings from the investigation. As a result, uncertainty continues to pressure market confidence around the FLOW token.

According to Chainalysis, cryptocurrency theft surpassed $3.4 billion in 2025. Private key compromises dominated attack methods, accounting for 88% of stolen funds in Q1 2025. The Flow incident adds to growing concerns over blockchain security. Market participants remain cautious as investigations into the suspected exploit continue.

Also Read: XRP Price Prediction 2025–2029: Can XRP Break Above $2.00 Soon?

The post FLOW Crashes 40% as Experts Flag Possible $4M Exploit and Exchanges Halt Transfers appeared first on 36Crypto.