The FLOW token experienced a dramatic price crash, losing over 42% of its value in 24 hours, after major South Korean cryptocurrency exchanges suspended its deposits and withdrawals due to security concerns. According to Binance market data, FLOW dropped from $0.17 to $0.079 during the day, trading at approximately $0.10 at the time of reporting.
Following the price decline, the Flow Foundation announced it was investigating a potential security incident affecting the Flow network. The foundation stated its engineering teams are actively working with network partners to mitigate the issue's effects and will share verified information.
In a coordinated move on March 21, 2025, South Korea's leading exchanges—Upbit, Bithumb, and Coinone—temporarily suspended all deposit and withdrawal services for FLOW. The exchanges cited an urgent security review, although spot trading pairs remain active. The South Korean Digital Asset Exchange Association (DAXA) issued a "transaction risk warning" for the token. Upbit noted that DAXA member exchanges may take steps such as issuing warnings, adding the platform to a trading alert list, or terminating trading support to protect users.
The market reaction was swift: FLOW's price dipped approximately 7% across global markets following the announcement, while trading volumes on the affected Korean exchanges plummeted by over 60% for FLOW pairs. The action exemplifies South Korea's rigorous regulatory environment under the Virtual Asset User Protection Act, enacted in 2024.
Security experts like Dr. Mina Choi from Seoul National University explain that such suspensions are a standard risk management tool when anomalous network activity is detected. The investigation will likely focus on the Flow core protocol's consensus mechanism, known smart contracts, and the integrity of the deposit address generation system. Historical precedents suggest such reviews can last from 48 hours to two weeks.
For users, the suspension creates immediate challenges, preventing transfers for staking or arbitrage, though funds remain secure in user accounts. The event underscores the intersection of blockchain network health, exchange operational security, and evolving regulatory frameworks.
