Flow Foundation has moved to stop the planned delisting of its FLOW token from three major South Korean crypto exchanges, escalating a dispute that began after a December 2025 security incident on the Flow blockchain. The legal filing, submitted to the Seoul Central District Court on March 9, 2026, seeks to suspend the termination of trading support by Upbit, Bithumb and Coinone before the exchanges’ announced March 16 cutoff. The case matters well beyond Korea because it tests how exchanges, token issuers and users navigate security failures, remediation efforts and market access in one of crypto’s most active retail markets.
What happened in the Flow Foundation court filing
The immediate trigger for the dispute is a court motion filed by Flow Foundation and its parent company, Dapper Labs, asking the Seoul Central District Court to halt the exchanges’ decision to end trading support for FLOW. According to Flow Foundation, the filing is intended to preserve access for Korean users while the court reviews whether the delistings should proceed. Cointelegraph reported that the court was set to review the application on March 9, 2026, and determine next steps.
The exchanges at the center of the dispute are Upbit, Bithumb and Coinone. Flow Foundation said those three platforms announced on February 12, 2026 that they would terminate FLOW trading support effective March 16, 2026, while withdrawal support would remain open until April 16, 2026 at 3:00 p.m. Korea Standard Time. Korbit, another Korean exchange, has continued to support FLOW after conducting its own review and restoring full services.
For readers tracking the timeline, the key dates are:
- December 27, 2025: Flow suffers a security incident.
- February 12, 2026: Upbit, Bithumb and Coinone announce plans to end FLOW trading support.
- February 27, 2026: Korbit confirms full FLOW services in Korea.
- March 9, 2026: Seoul Central District Court reviews the motion.
- March 16, 2026: Planned end date for trading support on the three exchanges.
- April 16, 2026: Planned end date for withdrawals on those exchanges.
The phrase “Flow Foundation files court motion to block Korean exchange delistings” has quickly become a focal point for traders because South Korea remains one of the most influential crypto markets for retail participation and token liquidity.
The security incident behind the delisting fight
The legal challenge stems from a December 27, 2025 exploit on Flow. Flow Foundation and other reports said an attacker exploited a vulnerability that allowed certain assets to be duplicated rather than minted properly, bypassing supply controls. The foundation has said no user funds were drained and that counterfeit tokens were later permanently destroyed, but the incident still raised concerns about token integrity and exchange risk controls.
On January 30, 2026, Flow Foundation said it had permanently destroyed 87.4 billion counterfeit FLOW tokens, describing that step as the conclusion of the technical remediation process. The foundation also said exchanges and infrastructure partners were restoring services as reviews progressed. That figure became one of the most closely watched data points in the case because it underscored the scale of the duplication problem, even if the fake tokens were ultimately removed.
South Korean exchanges reacted early. Upbit suspended FLOW deposits and withdrawals on December 27, 2025, citing signs of a security incident on the Flow mainnet. On the same day, the Digital Asset Exchange Alliance, or DAXA, issued a trading risk alert and said it could take further action, including trading restrictions or delisting, depending on the investigation.
That sequence helps explain why the exchanges’ later delisting decision did not emerge in isolation. It followed weeks of exchange reviews, public caution notices and broader scrutiny of whether the token’s market structure and technical safeguards had been fully restored. In that context, the court filing is not only about one token listing; it is also about how much remediation is enough to reverse a delisting path once a major security event has occurred.
Flow Foundation files court motion to block Korean exchange delistings after remediation claims
Flow Foundation argues that the Korean delistings are no longer justified because major global exchanges have already restored services. In statements published on its website, the foundation said Coinbase, Kraken, OKX, Gate.io, HTX, Binance, Bybit, KuCoin, Bitget, MEXC and BitMart have independently reviewed the remediation work and resumed FLOW trading, deposits and withdrawals. It also said Korbit removed its caution designation and restored full support in Korea.
The foundation’s public position is that ending FLOW trading on Upbit, Bithumb and Coinone would not serve Korean users’ best interests. It has also emphasized that no government regulator in any jurisdiction has taken action against FLOW and that no Korean exchange suffered direct damage from the December incident. Those claims form the backbone of its argument that market access should remain open while users decide how to trade or hold the token.
According to Flow Foundation, the Korean exchange situation does not affect the operation of the Flow network itself, user-held tokens in self-custody, or applications built on the blockchain. That distinction is important for U.S. readers because exchange delistings often affect liquidity and price discovery more than the technical functioning of a decentralized network.
Still, the exchanges’ perspective is likely rooted in user protection. When a token experiences a supply-related exploit, exchanges face operational, legal and reputational risks. Even if remediation is completed, platforms may conclude that the safest course is to remove support rather than reintroduce exposure to a token that has already triggered a major incident. That is an inference based on the exchanges’ caution notices and the broader pattern of exchange risk management, rather than a direct quote from the exchanges in this case.
Market impact on FLOW, traders and the broader ecosystem
The market damage has already been severe. Cointelegraph reported that FLOW had fallen 75% since the late-December incident and was trading around $0.043 at the time of publication. The same report said the token was down 99.9% from its 2021 all-time high of $42, according to CoinGecko.
Network-level metrics also show pressure. Cointelegraph, citing DeFiLlama, said total value locked on Flow had fallen 82% to about $21 million from its November 2025 peak. Those numbers suggest the dispute is unfolding against a backdrop of already weakened investor confidence, lower on-chain activity and shrinking liquidity.
For stakeholders, the implications differ:
- Korean retail traders face reduced local liquidity if the delistings proceed.
- Global holders may see continued volatility as court developments unfold.
- Exchanges must balance user protection with fair access to trading.
- Flow developers and ecosystem partners face reputational spillover from exchange actions.
- Dapper Labs and Flow Foundation face a test of crisis management and regional strategy.
Flow Foundation has tried to counter the negative narrative by highlighting ecosystem activity. It has said PayPal’s PYUSD and USDC are live on-chain and that it is pursuing additional exchange listings in the region while expanding self-custody options for affected users. Those steps may help preserve utility, but they do not automatically solve the liquidity shock that can follow removal from large local exchanges.
Why the Korean case matters to the US crypto market
For U.S. readers, the significance of “Flow Foundation files court motion to block Korean exchange delistings” goes beyond a regional listing dispute. South Korea is one of the world’s most active digital asset markets, and exchange decisions there can influence global sentiment, token pricing and perceptions of project credibility. A court challenge by a token foundation also raises broader questions about whether issuers can or should use legal channels to contest exchange risk decisions.
The case also highlights a structural tension in crypto markets. Exchanges often present themselves as neutral marketplaces, but in practice they act as gatekeepers that make discretionary judgments about security, liquidity, compliance and user protection. Token issuers, by contrast, may argue that delistings can unfairly punish users even after technical fixes are completed. The Flow dispute puts those competing priorities into unusually sharp focus.
There is also a governance angle. Flow Foundation has framed its intervention as advocacy for Korean users and open access to the token. Critics, however, may view the filing as an attempt to pressure exchanges into reversing a risk-based decision. Neither position is inherently definitive on the current public record, which is why the court’s handling of the motion could become a reference point for future token delisting disputes in Asia and beyond.
What comes next
The next immediate milestone is the court’s response to the March 9 review. If the Seoul Central District Court grants interim relief, the planned March 16 trading cutoff could be delayed while the dispute is examined further. If the court declines to intervene, Korean users on Upbit, Bithumb and Coinone may need to trade or transfer holdings before the exchanges’ deadlines.
Longer term, the outcome may shape how exchanges respond after major token exploits. A ruling favorable to Flow Foundation could encourage other projects to challenge delistings when they believe remediation has been sufficient. A ruling that leaves the exchanges’ decision intact could reinforce the broad discretion platforms already exercise over listings and removals.
For now, the facts are clear: Flow Foundation has gone to court, the delisting dates are approaching, and the token remains under pressure despite restored support on several major global venues. Whether the legal move changes the outcome in Korea will determine not only the near-term future of FLOW in that market, but also how much leverage token foundations have when exchange trust breaks down after a security crisis.
Conclusion
The dispute over FLOW has become a high-stakes test of accountability in crypto markets. Flow Foundation says the network has been remediated, counterfeit tokens have been destroyed and most major exchanges have restored services. Upbit, Bithumb and Coinone, however, have moved toward delisting after a serious security incident and months of review. As the court weighs whether to pause those actions, traders, developers and exchanges across the industry are watching a case that could influence how future delisting battles are fought.
Frequently Asked Questions
What is the Flow Foundation court motion about?
Flow Foundation and Dapper Labs filed a motion with the Seoul Central District Court to suspend the planned delisting of FLOW by Upbit, Bithumb and Coinone.
Why are Korean exchanges delisting FLOW?
The exchanges’ actions follow a December 27, 2025 security incident on the Flow blockchain that allowed counterfeit tokens to be created, prompting trading risk alerts and exchange reviews.
When are the delistings scheduled to take effect?
Trading support is scheduled to end on March 16, 2026, and withdrawal support is scheduled to remain available until April 16, 2026 at 3:00 p.m. KST on the affected exchanges.
Has FLOW been removed from all Korean exchanges?
No. Korbit has said it restored full FLOW trading, deposits and withdrawals after its own review.
Did users lose funds in the Flow security incident?
Flow Foundation has said no user funds were compromised and that counterfeit tokens were permanently destroyed during remediation.
Why does this matter outside South Korea?
Because South Korea is a major crypto market, exchange decisions there can affect global liquidity, token prices and how future delisting disputes are handled across the industry.
