Flow Foundation Files Emergency Lawsuit to Prevent Delisting in Korea! FLOW Token Plunges 75%

Non-profit organization Flow Foundation submitted an application to the Seoul Central District Court on Monday, requesting a temporary halt to the plan by major Korean exchanges to delist FLOW tokens, which were scheduled for delisting on March 16. The crisis originated from a security incident in December, where attackers exploited a vulnerability to duplicate tokens worth approximately $3.9 million. All counterfeit tokens have since been permanently destroyed, but the FLOW token has dropped over 75% since the incident.

Background: How the December Security Breach Triggered a Chain Reaction

In December 2025, the Flow network experienced a unique security incident. Attackers exploited a vulnerability that allowed them to duplicate specific assets—importantly, this was a “copy” rather than “mint,” meaning the attack bypassed supply control mechanisms without accessing or draining any existing user balances. According to the Flow Foundation, about $3.9 million worth of tokens were duplicated, but “no user funds were harmed, and all counterfeit tokens have been permanently destroyed.”

Despite this, the appearance of duplicated tokens directly impacted the credibility of FLOW’s supply and the network’s reputation. Several exchanges subsequently suspended trading of FLOW tokens, including South Korea’s three major exchanges—Upbit, Bithumb, and Coinone. On February 12, these exchanges announced plans to officially cease support for FLOW trading on March 16.

Flow Foundation’s Legal Counterattack: Why Are Global Exchanges Restoring Support While Korea Insists on Delisting?

The core argument in the Flow Foundation’s court application is that major global exchanges have generally resumed full trading support for FLOW after independent reviews and remedial measures, indicating that the technical issues have been effectively addressed.

Currently, the main global exchanges still supporting FLOW trading include:

• Centralized exchanges
• South Korean local exchanges

The Flow Foundation states that “FLOW tokens are still fully available on major global exchanges” and emphasizes its “commitment to ensuring open access to FLOW in every market.” The legal filing aims to seek court intervention in Korea to temporarily halt the delisting until further independent review by relevant authorities is completed.

Dual Challenges Facing FLOW Tokens and Ecosystem

Legal efforts alone cannot mask the deeper market difficulties facing FLOW. The token is currently trading at $0.043, according to CoinGecko, representing a decline of approximately 99.9% from its all-time high of $42 in 2021. Since the security incident in December, the token has fallen 75%, reflecting market reactions to the vulnerability event, but a broader downward trend had already been underway prior to this incident.

According to DeFiLlama, the total value locked (TVL) on the Flow platform has decreased by 82% since its peak in November 2025, down to about $21 million. The overall NFT market’s continued contraction also poses headwinds—its total market cap has fallen from a peak of around $170 billion in mid-2022 to approximately $1.4 billion now. Core applications like NFTs and Web3 gaming on Flow are facing macro challenges due to shrinking market demand.

However, the Flow Foundation emphasizes that the ecosystem continues to develop, with major partners such as Disney, NBA, NFL, and Ticketmaster actively utilizing Flow blockchain technology, serving as strong endorsements of the platform’s long-term potential.

Frequently Asked Questions

Q: Why did the December security incident cause exchanges to suspend trading?
A: The December vulnerability allowed attackers to duplicate specific assets without minting new tokens or using user funds, effectively bypassing supply control mechanisms. Although all counterfeit tokens have been destroyed, the appearance of duplicated supply damaged trust in the token’s supply integrity. Exchanges suspended trading to protect users from potential market manipulation risks pending further review.

Q: Why do Korean exchanges insist on delisting while global exchanges have resumed support?
A: Based on publicly available information, Upbit, Bithumb, and Coinone announced on February 12 that they would stop supporting FLOW on March 16, but did not specify whether their evaluation criteria differ from those of global exchanges or if Korean regulatory requirements are a factor. The Flow Foundation is seeking legal action to delay the delisting, aiming for more communication and review time.

Q: What happens if the court application fails?
A: If the three major Korean exchanges delist FLOW as scheduled on March 16, the token will lose most retail trading channels in Korea. Given Korea’s significance as a major cryptocurrency market, this could further reduce liquidity and impact market sentiment. However, FLOW can still be traded on global major exchanges like Coinbase and Binance, and Korbit continues to support trading within Korea.