- Trending
- Comments
- Latest
The Flow Foundation and its parent company Dapper Labs have filed an emergency motion with the Seoul Central District Court seeking to halt the planned delisting of the FLOW cryptocurrency from three major South Korean exchanges.
The legal filing, submitted Monday, targets decisions by Upbit, Bithumb and Coinone to terminate trading support for the token on March 16 following a security incident that shook investor confidence late last year.
The controversy traces back to a December security incident involving the Flow blockchain, a layer-1 network originally developed by Dapper Labs for Web3 games and digital collectibles.
According to the foundation, an attacker exploited a vulnerability that allowed some tokens to be duplicated rather than properly minted, effectively bypassing supply controls.
The exploit resulted in about $3.9 million worth of duplicated tokens, though the foundation said user balances were not drained and the counterfeit tokens were later destroyed.
Despite the limited financial damage, the incident prompted South Korea’s largest crypto exchanges to reassess the asset’s risk profile.
On Feb. 12, Upbit, Bithumb and Coinone announced they would discontinue trading support for the FLOW token, citing concerns about market integrity and user protection.
The FLOW token plunged roughly 75% after the incident, and today trades far below its 2021 peak price of about $42.
The delisting threat also created what analysts describe as a liquidity shock, as South Korean exchanges historically account for a large portion of retail crypto trading volume.
In response, the Flow Foundation and Dapper Labs filed a legal request seeking a temporary injunction that would prevent the exchanges from delisting FLOW while the dispute is reviewed.
The court is scheduled to examine the application and determine next steps, which could include temporarily suspending the delisting until the case is resolved.
The foundation argues the exchanges acted prematurely, particularly because the security issue was resolved and no regulators have sanctioned the project.
“Every major global exchange has independently reviewed and restored full FLOW services.” Flow Foundation, in a statement cited by Cointelegraph.
According to the organization, the token remains actively traded on major international platforms including Coinbase, Kraken, Binance, OKX, Gate.io and Bybit.
Only one Korean exchange, Korbit, currently continues to support FLOW trading in the country.
The foundation maintains that neither exchanges nor users suffered direct losses from the incident, strengthening its case that the delisting decision was disproportionate.
“This step reflects the responsibility of the Foundation to advocate for the Korean community using every available pathway.” — Flow Foundation statement.
The outcome of the case could determine whether FLOW retains access to one of the world’s most active crypto markets.
South Korea has historically played a significant role in altcoin trading volumes, often driving regional price premiums and liquidity.
Losing access to the country’s major exchanges could reduce trading activity and further pressure the token’s price.
Analysts say the case may also test the balance of power between blockchain projects and centralized exchanges.
According to Ainvest News analysis, the legal challenge tests the boundaries of exchange governance and regulatory oversight.
The broader Flow ecosystem remains active despite the market turbulence.
Major brands such as National Basketball Association, National Football League, Disney and Ticketmaster have previously launched blockchain projects or digital collectibles on the network.
However, the network’s financial metrics have weakened. Total value locked (TVL) on Flow has dropped sharply since late 2025.
A favorable ruling could restore trading access and stabilize liquidity. If the delisting proceeds as planned on March 16, however, FLOW could face further downward pressure in one of its most important markets.
Copyright © 2025 - The Bit Gazette.
