Centralized Exchange Activity Raises Red Flags

[johnblockbuster]

In its post-mortem, Flow flagged serious concerns about large token movements on a centralized exchange shortly after the exploit. According to the foundation, a single account deposited roughly 150 million FLOW — about 10% of the total supply — rapidly swapped much of it into Bitcoin and withdrew more than $5 million before the network halt.

While the exchange was not named, the foundation described the activity as a potential AML/KYC failure that shifted financial risk onto unsuspecting market participants. The incident has reignited debate over how centralized venues handle suspicious flows during on-chain emergencies, and how quickly they coordinate with affected protocols.

[ed]

this is exactly why ppl dont trust centralized exchanges during exploits