Upbit, the South Korean cryptocurrency exchange, temporarily suspended FLOW token withdrawals on December 27, 2025, due to a suspected security incident on the Flow blockchain network.
This suspension could impact FLOW’s trading volume and market stability, raising concerns about the security of Layer 1 blockchain networks within the cryptocurrency community.
Upbit Suspends FLOW Due to Mainnet Security Threats
Upbit, a major South Korean cryptocurrency exchange, has suspended FLOW deposits and withdrawals. The decision, announced on December 27, 2025, was motivated by security threats identified on the Flow mainnet. Other exchanges have reported similar measures.
Korean Digital Asset Exchange Consortium (DAXA) issued a trading risk alert the same day, warning of potential escalations, including labeling FLOW as a cautionary trading asset or possibly ceasing its support entirely.
“We have issued a trading risk alert for FLOW due to significant security concerns identified on the Flow mainnet.” — DAXA Trading Desk, Analyst, Korean Digital Asset Exchange Consortium
FLOW Price Falls Amid Security Concerns
The news of potential security vulnerabilities resulted in a decrease in the price of FLOW. While Upbit and others took immediate action, user sentiment regarding FLOW’s future remains uncertain.
Potential financial ramifications include further price volatility and regulatory scrutiny. Historical data suggests that exchanges have previously suspended trading activities for similar risks on Layer 1 and niche tokens, underscoring the seriousness of the situation.
Security Incidents: A Historical Perspective
Similar trading suspensions have previously occurred for tokens like 0G and STX, typically due to network security concerns. These incidents have generally prompted temporary market disruptions.
According to Kanalcoin, maintaining investor confidence depends on swift remediation and transparency. If not addressed adequately, such incidents could heighten regulatory attention, affecting the broader cryptocurrency landscape.
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