Flow Foundation Seeks Court Order to Halt Delisting of FLOW on Korean Exchanges
Seoul, South Korea – March 9, 2026 – The non‑profit Flow Foundation, together with its parent company Dapper Labs, has lodged a petition with the Seoul Central District Court requesting an injunction that would stop three South Korean cryptocurrency exchanges from suspending trading of the native FLOW token. The motion, filed on Monday, targets the upcoming removal of FLOW from Upbit, Bithumb and Coinone, which had announced a March 16 deadline for ending support.
Background: December security breach
In late December 2025, Flow’s layer‑1 blockchain experienced a vulnerability that was exploited by an unknown attacker. The exploit permitted the creation of duplicate tokens rather than the standard minting process, effectively inflating the supply without touching existing user balances. The breach generated approximately 3.9 million counterfeit FLOW tokens, a figure that the Flow team says was fully neutralised and that no user funds were ever at risk.
Following the incident, several exchanges worldwide paused or halted FLOW trading as the presence of duplicated tokens raised concerns over price integrity and network credibility. The three Korean platforms announced on February 12 that they would cease trading FLOW on March 16, citing the incident’s impact on market confidence.
Global exchange response
Since the remediation measures were implemented, major international venues—including Coinbase, Kraken, OKX, Gate.io, HTX, Binance and Bybit—have resumed unrestricted FLOW trading. Flow Foundation also notes that Korbit continues to list the token for Korean traders. The organization claims that each exchange independently audited the chain, verified the fix and restored full services.
Court filing and next steps
The Seoul Central District Court is scheduled to consider the foundation’s request on March 9. If the court grants the injunction, the three Korean exchanges would be required to keep FLOW available for trading pending a further review. The foundation argues that the delisting could unfairly penalise token holders and hinder the broader adoption of the Flow ecosystem, which it says remains active with partners such as Disney, the NBA, the NFL and Ticketmaster building applications on the chain.
Market impact
FLOW’s price has struggled to recover after the December exploit. The token, which once peaked at $42 in 2021, now trades near $0.043—a decline of roughly 99.9% from its all‑time high. Total value locked (TVL) on the platform has also fallen sharply, dropping 82% to about $21 million from its November 2025 peak, according to DeFiLlama data. The broader NFT market, a key use case for Flow, has contracted by more than 90% since its 2022 zenith, underscoring the sector‑wide challenges facing the asset.
Analysis
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Legal leverage vs. market forces: While the court order could temporarily preserve trading access for Korean users, it does not address the fundamental market sentiment that has driven FLOW’s steep price depreciation. The request may be more about protecting investor confidence than reversing the token’s underlying financial trajectory.
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Exchange risk management: The Korean exchanges’ decision to delist mirrors a cautious approach adopted by many platforms after security incidents. Even with the chain’s remediation, the perception of risk can linger, prompting exchanges to act pre‑emptively to safeguard their reputations.
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Ecosystem resilience: Flow’s continued availability on major global exchanges and its partnership pipeline suggest that the project retains a degree of developer and corporate interest. However, rebuilding trust will likely require sustained transparency, third‑party audits and perhaps additional incentives for liquidity providers.
- Regulatory implications: The case highlights how regional courts can become arenas for crypto disputes, potentially setting precedents for future litigation involving exchange listings and delistings in jurisdictions with active securities‑law enforcement.
Key Takeaways
- Court intervention requested: Flow Foundation and Dapper Labs are asking a Seoul court to block the imminent removal of FLOW from Upbit, Bithumb and Coinone.
- Security breach contained: The December exploit resulted in counterfeit tokens that were destroyed; no user balances were compromised.
- Global exchange support restored: All major non‑Korean exchanges have resumed full FLOW trading following independent security reviews.
- Token price remains depressed: FLOW is trading at a fraction of its former value, reflecting lingering market skepticism.
- Broader market context: The NFT and DeFi sectors are experiencing prolonged downturns, adding pressure on tokens like FLOW that rely on those use cases.
- Potential precedent: The outcome may influence how exchanges and token issuers manage delisting risks and legal recourse across different jurisdictions.
The Seoul Central District Court’s ruling, expected later this week, will determine whether FLOW retains its presence on South Korea’s largest trading platforms in the short term, while the longer‑term recovery of the token will depend on broader market dynamics and the ecosystem’s ability to restore confidence.
Source: https://cointelegraph.com/news/flow-foundation-files-court-motion-to-block-korean-exchange-delistings?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
