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On-chain analyst: FLOW price plummets possibly due to private key leakage leading attackers to mint millions of FLOW tokens
Deep Tide TechFlow News, December 28th, according to The Block, the Flow Foundation announced on Saturday that it is investigating a potential security incident affecting its Layer 1 blockchain. This news triggered a sharp sell-off of the FLOW token.
On-chain analyst Wazz pointed out this vulnerability for the first time after the price crash, estimating the stolen funds to be approximately $4 million. Wazz’s analysis shows that the attacker used a wallet created about six months ago to mint millions of wrapped FLOW (WFLOW) tokens through a TransparentUpgradeableProxy contract. This pattern is consistent with private key leakage rather than a smart contract vulnerability.
Security expert Taylor Monahan stated, “There is a potential vulnerability in the Flow blockchain that allows attackers to mint native tokens FLOW as well as other bridge tokens, such as WBTC, WETH, and stablecoins.” She added, “The estimated loss is about $3.9 million.”