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Less than a week after a security breach affecting its execution layer, the layer-1 blockchain Flow is facing yet another challenge. Leading crypto exchange Binance revealed that it would add FLOW, the blockchainās native coin, to its Monitoring Tag.
Binance will extend the Monitoring Tag to include ACA, D, DATA, and FLOW.
Find out more š https://t.co/F7qSa1WW93 pic.twitter.com/izWCopBTAY
ā Binance (@binance) January 2, 2026
For context, the crypto exchange includes a Monitoring Tag for cryptocurrencies that pose higher risk and volatility than other listed assets. These assets are usually one step away from being delisted from the exchange once they no longer meet listing requirements.
Following this announcement, FLOW saw a rapid price drop by nearly 20%, from $0.09 to $0.0759.
On December 27th, Flow reported being the victim of a security attack targeting a vulnerability in its execution layer. The hacker proceeded to siphon $3.9 million worth of crypto before Flow validators collectively halted operations on the blockchain within 30 minutes.
This action prevented the bad actor from further stealing from the network. Still, it also restricted regular users from transacting on the L1 blockchain. Flow stated in its announcement that usersā funds were unaffected by the security exploit.
In an effort to recover the stolen funds, the Flow team proposed a rollback action later that day. A rollback proposal entails undoing changes to the blockchain by reverting it to a state it had previously been in before an event, such as a hack. Flowās plan was to rollback nearly six hours of transactions. If agreed on, the move would erase the attack from the blockchainās ledger and rebalance the affected decentralized exchange pools with assets from the Flow Foundation.
However, this approach did not sit right with many Flow community members and partners. Many were on the side that taking such a drastic action would undermine the networkās decentralization. They believe that it is important for the Flow blockchain to remain immutable.
Complying with their usersā wishes, Flow hatched another strategy in collaboration with bridge operators, crypto exchanges, and infrastructure partners. The approach involved validators voting on changes to the network. For instance, a temporary software upgrade will be implemented to enable Flowās service account to have the authorities it usually doesnāt have to facilitate remediation.
Once completed, the permissions will be revoked. Various community members accepted this option. At the time of writing, the protocol already completed its first phase of recovery, and Phase 2 is already in progress.
Despite these actions, the hacker remains at large. It is currently uncertain if and when Flow will recover the stolen funds.
It is worth noting that FLOW took a big hit after the security exploit. Before the attack, it traded above $0.1725. However, it has now tumbled to $0.0758, marking an all-time low for the digital asset.
With FLOW now a highly volatile asset, Binance has decided to exercise caution. Before users can trade the cryptocurrency, they must pass a quiz every 90 days and accept the Terms of Use. This precautionary measure enables traders to be self-aware about the risks involved in trading FLOW.
Still, like other cryptocurrencies that have been in its Monitoring Tag, Binance can remove the tag if the crypto projectās token no longer exhibits extreme volatility.
Aside from FLOW, Binance also recently included Acala (ACA), DAR Open Network (D), and Steamr (DATA) to its Monitoring Tag. These also saw notable price drops today.
The post Binance Adds Flow Protocol to Monitoring Tag After $3.9M Hack appeared first on CoinTab News.
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