Binance Tightens Trading Rules After Flow Blockchain Exploit

Binance has announced new changes to its trading and monitoring policies. This decision follows a recent security breach on the Flow blockchain that led to the loss of $3.9 million in digital assets. 

The decision comes as concerns grow across the crypto market about risk exposure, token stability, and exchange oversight after major exploits.

Binance Delists Flow Trading Pair and Adds Monitoring Warning

In a public announcement released on January 2, Binance confirmed that it would remove nine spot trading pairs from its platform starting on January 3. One of the affected pairs includes Flow against Bitcoin (BTC). 

The exchange stated that the decision followed internal reviews of the listed tokens and their overall risk profiles. At the same time, Binance added Flow and three other digital assets to its monitoring tag list. 

Tokens placed under this tag face a higher chance of removal if they fail to meet Binance’s listing standards over time. 

Binance explained that the monitoring tag serves as a warning to users. Assets under this category may experience sharp price swings and increased uncertainty. 

While Binance did not directly link these actions to the recent Flow blockchain exploit, the timing has raised questions within the crypto community. 

Flow Raises Concerns Over Exchange Handling

In a preliminary report addressing the exploit, the Flow team expressed concern about how one exchange managed the incident. 

Flow said weak anti-money laundering (AML) and know-your-customer controls let attackers deposit stolen FLOW tokens. The hackers then converted part of the funds into Bitcoin and withdrew them.

Flow did not name the exchange involved in the incident. However, some community members believe Binance may be the platform mentioned, based on the details in the report.

Flow Reports Major Progress in Blockchain Recovery

As of January 2, the Flow Foundation stated that it had made strong progress in restoring its blockchain ecosystem. Most of the recovery steps have already been completed, with only user account restoration and the cleanup of fraudulent tokens remaining.

The team added that recovery efforts that were originally planned to take several days were instead carried out at the same time. 

This approach helped the network restore its core programming system and its Ethereum-compatible functions. At the same time, it removed fake assets and protected valid transaction records.

Earlier in the week, Flow withdrew a proposal that would have reversed parts of the blockchain. The idea faced heavy criticism from users who feared it could harm trust in the network.

Flow announced that it plans to release a detailed and complete report on the exploit within the next 48 hours. The platform also expects full restoration of the ecosystem to be completed within the week.

The incident has renewed attention on how exchanges monitor risk and how blockchains respond to security breaches.