Huobi HTX Criticizes Flow’s Asset Transfer Actions

Huobi HTX criticized the Flow project team’s unilateral asset transfer plan, following a protocol vulnerability exploit on December 27, 2025, which led to unauthorized FLOW minting.

This reflects broader concerns about decentralization and asset security principles, impacting FLOW’s market perception and user trust in the project’s governance practices.

Decline in FLOW Price Amid Controversial Asset Recovery

Huobi HTX issued its statement following Flow Foundation’s unilateral action to recover assets affected by a vulnerability on December 27, 2025. Flow’s recovery involved forcibly transferring FLOW tokens from centralized exchange addresses, including Huobi HTX, after the illegal minting of tokens worth about $3.9 million was discovered. Flow’s actions have drawn attention for setting a negative precedent in asset security boundaries by undertaking recovery efforts without communicating with exchanges or users adequately.

The immediate implications include the potential burning of the forcibly recovered assets on January 30, 2026, with legitimate token holders being inadvertently affected. Huobi HTX has expressed its disapproval of Flow’s actions, emphasizing the importance of respecting decentralization and property rights. The incident further showcases vulnerabilities in blockchain networks and the decisions taken by project teams when addressing breaches.

“User existing balances not accessed in this hack, all user deposits safe” – Flow Official Account, Project Team, Flow Foundation.

Community reactions have been mixed, with some supporting Flow’s decisive measures to combat illicit minting while others echoed Huobi HTX’s concerns about decentralization violations. No major government or institutional reactions emerged, but the event highlighted significant issues for future regulatory considerations.

Market Data and Analyst Insights

Did you know? Flow’s approach to unilateral asset recovery marks a rare instance where a project team has independently taken recovery actions without comprehensive community and exchange input. This event could influence future protocol security measures and industry discussions on decentralization.

As of January 13, 2026, according to CoinMarketCap, Flow (FLOW) is trading at $0.09 with a market cap of $144.95 million, reflecting a 7.83% decline over 24 hours. The token has experienced a 69.96% decrease over the past 90 days, amid an overall market downturn.

Analysts note that if similar recovery actions become common, it could spur calls for regulatory oversight to protect user assets and maintain transparency. The Flow incident aligns with broader 2025 exploit trends, potentially prompting projects to reassess their risk strategies.