Cryptocurrency exchange Binance has announced a change to its trading and monitoring policies following a $3.9 million Flow blockchain exploit last week.
In an announcement on Friday, Binance said it will remove nine spot trading pairs from the exchange starting Saturday, including one for Flow (FLOW)/Bitcoin (BTC). In a separate announcement, the corporate added FLOW and three other tokens to its monitoring tag list.
The tag is included in tokens that “exhibit significantly higher volatility and risk in comparison with other listed tokens,” the exchange said, noting that tokens with the surveillance tag are at high risk of not meeting listing standards.
Binance added 4 latest tokens to its monitoring tag list on Friday. Source: Binance
Binance said the changes were as a consequence of “recent reviews” of the tokens, but didn’t specifically mention Saturday’s Flow exploit that resulted within the theft of $3.9 million value of cryptocurrencies. Cointelegraph reached out to the exchange for comment on the exploit but had not received a response on the time of publication.
In a preliminary post-mortem report on the exploit, Flow said it was “concerned about an exchange's handling of this incident,” citing an “AML/KYC flaw” that allowed the hackers to deposit the stolen FLOW tokens, convert a few of them to Bitcoin and withdraw the funds. Some users speculated that the unnamed exchange might be Binance based on Flow's description.
The flow continues with the recovery plan after the blockchain rollback is abolished
On Friday, the Flow Foundation said it was working to completely restore the blockchain ecosystem as a part of a plan to combat the $3.9 million exploit. According to the platform, the one remaining steps within the plan were the recovery of user accounts and the elimination of fraudulent tokens.
“What was originally planned to be a sequential, multi-day process was executed in parallel, restoring each Cadence and EVM [Ethereum Virtual Machine] functionality while maintaining surgical precision in removing fraudulent assets and preserving legitimate transaction history,” said Flow.
The update follows Flow scrapping a proposal earlier this week that will roll back the blockchain, which was halted following criticism from many users. According to the platform, it expects to release a comprehensive post-mortem report on the hack “inside 48 hours,” with “full ecosystem recovery expected later this week.”
