Flow Foundation files court appeal to prevent Korean exchanges from suspending FLOW token trading in Seoul

The Flow Foundation and its parent company Dapper Labs have filed an application with the Seoul Central District Court to prevent South Korean exchanges from terminating support for their native token, FLOW.

The move comes after a disruptive security incident in December that shook the blockchain community and led some exchanges to halt trading.

December Exploit Shakes Confidence

Flow, a layer-1 blockchain developed by Dapper Labs in 2019, experienced a security vulnerability that allowed an attacker to duplicate $3.9 million worth of tokens instead of minting new ones.

Importantly, no user funds were accessed or drained, and all counterfeit tokens were permanently destroyed.

Despite this, several major Korean exchanges—including Upbit, Bithumb, and Coinone—announced they would suspend FLOW trading on March 16 due to concerns about network trust and token valuation.

Flow Foundation Pushes Back

The Foundation insists that its remediation efforts have been successful, noting that all major global exchanges have since restored full FLOW services.

Platforms such as Coinbase, Kraken, Binance, and others continue to list FLOW, while Korea’s Korbit maintains local trading.

The Seoul Central District Court is expected to review the application on March 9 to determine whether FLOW trading support can be maintained across South Korean exchanges.

FLOW Ecosystem and Usage

Flow was created to address scalability issues in Web3 applications, particularly for gaming and digital collectibles.

Over the years, its ecosystem has grown, with high-profile partnerships including Disney, NBA, NFL, and Ticketmaster building on the blockchain.

Dapper Labs, renowned for the CryptoKitties NFT project, continues to support the platform’s development, demonstrating Flow’s ongoing utility beyond the security incident.

FLOW Token Faces Market Struggles

Despite ecosystem growth, FLOW’s token price has suffered dramatically.

After a slight rebound following the court filing, the token remains 75% lower than its December value, currently trading at $0.043.

From its 2021 all-time high of $42, FLOW has plummeted 99.9%, with total value locked (TVL) on the platform down 82% to $21 million, according to DeFiLlama.

The broader NFT market has similarly struggled, declining 92% from its mid-2022 peak of $17 billion to around $1.4 billion today, highlighting the challenges facing the entire digital collectibles sector.

Impact and Consequences

The security incident has had immediate and long-term effects:

• Market confidence shaken: Duplicate token creation, even if contained, undermined trust in Flow’s security.

• Trading disruptions: Korean exchanges’ suspension of FLOW limited liquidity and regional adoption.

• Asset devaluation: Token price collapse has caused significant losses for investors.

• Ecosystem growth challenges: Reduced TVL and market activity may slow new projects building on Flow.

What’s Next?

The Seoul court’s decision on March 9 will determine whether FLOW trading continues in South Korea. Meanwhile, Flow Foundation and Dapper Labs are likely to continue emphasizing remediation, security audits, and ecosystem development to restore confidence.

Investors and users are also watching whether FLOW can recover value and rebuild liquidity in a broader global context, as NFT and blockchain adoption continues to evolve despite market downturns.

Summary

Flow Foundation and Dapper Labs have filed with Seoul’s court to stop Korean exchanges from ending FLOW trading after a $3.9 million token duplication incident. While no user funds were lost, the event caused a dramatic price drop and raised trust concerns. FLOW remains active on global exchanges, and the blockchain ecosystem continues to grow with partnerships including Disney, NBA, NFL, and Ticketmaster. The upcoming court decision will shape the future of FLOW trading in South Korea.

Bulleted Takeaways

• FLOW token suffered a $3.9 million duplication exploit in December; no user funds were lost.

• Korean exchanges Upbit, Bithumb, and Coinone planned to suspend FLOW trading on March 16.

• Flow Foundation and Dapper Labs filed with Seoul Central District Court to halt trading termination.

• FLOW remains available on major global exchanges, including Coinbase, Kraken, Binance, and Korbit in Korea.

• Token price is down 75% since December, 99.9% from its 2021 all-time high of $42.

• Total value locked on Flow has decreased 82%, reflecting slowed ecosystem liquidity.

• Flow blockchain continues to grow, supported by Disney, NBA, NFL, Ticketmaster, and other partners.

• Court ruling on March 9 will determine whether FLOW trading continues in South Korea.