Verify a decision

{"actor":"system:backfill","investigation_id":"e65bd29c-17e0-4b31-835b-e2e2473a7787","kind":"publish","page_slug":"flow","published_at":"2026-05-26T19:24:46.731Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Flow","sections":[{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.coindesk.com/tech/2025/12/29/flow-scraps-blockchain-rollback-plan-after-community-backlash-over-decentralization","type":"other","url":""},{"credibility":3,"name":"https://www.theblock.co/post/383796/flow-blockchain-probes-security-incident-as-flow-token-plunges-over-40","type":"other","url":""},{"credibility":3,"name":"https://coinpaper.com/13434/flow-faces-trust-crisis-after-exploit-and-rollback-plan","type":"other","url":""},{"credibility":3,"name":"https://www.livebitcoinnews.com/flow-blockchain-prepares-full-restart-after-3-9m-bridge-exploit/","type":"other","url":""},{"credibility":3,"name":"https://cryptobriefing.com/flow-blockchain-security-breach-resolution/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.cryptopolitan.com/flow-drops-south-korea-court-delisting/","type":"other","url":""},{"credibility":3,"name":"https://crypto.news/flow-foundation-seeks-court-order-to-stop-flow-token-delisting-in-south-korea/","type":"other","url":""},{"credibility":3,"name":"https://en.bitpush.news/articles/8402489?f=google-sitemap","type":"other","url":""},{"credibility":3,"name":"https://blockonomi.com/flow-foundation-takes-legal-action-against-korean-exchanges-over-flow-token-delisting/","type":"other","url":""},{"credibility":3,"name":"https://beincrypto.com/flow-foundation-court-korea-delisting-block/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://charltonsquantum.com/dapper-labs-reaches-4-million-settlement-affirms-nba-top-shot-nfts-are-not-securities/","type":"other","url":""},{"credibility":3,"name":"https://www.theblock.co/post/298286/dapper-labs-settles-nba-top-shot-moments-lawsuit-for-4-million","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/policy/2023/02/23/dapper-labs-ruling-could-spell-trouble-for-other-centralized-nft-projects-experts-say","type":"other","url":""},{"credibility":3,"name":"https://www.winston.com/en/blogs-and-podcasts/non-fungible-insights-blockchain-decrypted/judge-dismisses-dapper-labs-motion-nft-class-action-proceeds","type":"other","url":""},{"credibility":3,"name":"https://www.cov.com/en/news-and-insights/insights/2023/04/federal-court-concludes-that-certain-nfts-may-be-securities-preliminary-determination-in-ongoing-nba-top-shot-litigation","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://fortune.com/crypto/2024/04/11/sec-dapper-labs-investigation-case-closed-september-2023-roham-gharegozlou/","type":"other","url":""},{"credibility":3,"name":"https://crypto.news/sec-dapper-labs-investigation/","type":"other","url":""},{"credibility":3,"name":"https://www.fxstreet.com/cryptocurrencies/news/sec-quietly-investigated-and-closed-case-against-altcoin-flow-founder-dapper-labs-in-september-202404111923","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://topclassactions.com/lawsuit-settlements/closed-settlements/7-05m-nba-top-shot-privacy-class-action-settlement/","type":"other","url":""},{"credibility":3,"name":"https://www.classaction.org/news/nba-top-shot-nft-owners-video-viewing-data-secretly-shared-with-meta-class-action-claims","type":"other","url":""},{"credibility":3,"name":"https://www.nbatopshotvideoprivacyclassactionsettlement.com/Home/FAQ","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.cnbc.com/2022/11/03/nba-top-shot-maker-dapper-labs-lays-off-22percent-of-workers.html","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/business/2023/02/23/dapper-labs-laying-off-another-20-of-its-staff-report","type":"other","url":""},{"credibility":3,"name":"https://www.theblock.co/post/239335/dapper-labs-lays-off-51-employees-to-make-business-leaner-says-ceo","type":"other","url":""},{"credibility":3,"name":"https://www.theblock.co/post/215888/nba-top-shot-ceos-decadent-lifestyle-public-shaming-led-to-toxic-culture-as-dapper-flails","type":"other","url":""},{"credibility":3,"name":"https://ncfacanada.org/dapper-labs-ceo-in-the-hot-seat-with-toxic-culture-extravagant-tastes-and-court-battle/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://coinmarketcap.com/currencies/flow/","type":"other","url":""},{"credibility":3,"name":"https://www.coingecko.com/en/coins/flow","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/business/2021/09/22/dapper-labs-said-to-reach-76b-valuation-in-250m-funding-round","type":"other","url":""},{"credibility":3,"name":"https://www.sportico.com/business/tech/2021/dapper-labs-valuation-7-billion-top-shot-1234640429/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://charltonsquantum.com/dapper-labs-reaches-4-million-settlement-affirms-nba-top-shot-nfts-are-not-securities/","type":"other","url":""},{"credibility":3,"name":"https://www.ainvest.com/news/flow-security-crisis-wake-call-blockchain-infrastructure-investors-2512/","type":"other","url":""},{"credibility":3,"name":"https://www.ainvest.com/news/flow-blockchain-3-9m-exploit-rollback-controversy-critical-test-decentralized-governance-investor-confidence-2601/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://messari.io/report/state-of-flow-q1-2026","type":"other","url":""},{"credibility":3,"name":"https://flow.com/post/flow-ecosystem-march-2026-update","type":"other","url":""}]}],"sources_used":[],"summary":"Flow is a layer-1 proof-of-stake blockchain created by Dapper Labs, the company behind NBA Top Shot and CryptoKitties, with FLOW as its native token. The project has faced a serious 2025 protocol-level exploit ($3.9M stolen), a controversial rollback proposal that drew community backlash, multiple rounds of company layoffs, a $4M securities class-action settlement, a separate $7.05M privacy lawsuit settlement, SEC investigation, and delisting from major South Korean exchanges following the breach. The FLOW token has lost over 99% of value from its April 2021 all-time high of $46.16, trading near $0.033 as of mid-2026.","timeline":[{"date":"2017-01-01","event":"Dapper Labs (then Axiom Zen) launches CryptoKitties on Ethereum; congestion on Ethereum prompts development of a dedicated blockchain.","source":""},{"date":"2020-07-01","event":"Flow blockchain mainnet launches. FLOW token made available to investors.","source":""},{"date":"2020-10-01","event":"NBA Top Shot launches on Flow blockchain, marking Dapper Labs' flagship consumer product.","source":""},{"date":"2021-03-01","event":"NBA Top Shot peaks with over $224 million in sales in a single month and more than 1.3 million transactions.","source":""},{"date":"2021-04-05","event":"FLOW token reaches all-time high of $46.16.","source":""},{"date":"2021-05-01","event":"Class-action lawsuit filed alleging NBA Top Shot Moments are unregistered securities and that Dapper Labs restricted withdrawals to artificially prop up prices.","source":""},{"date":"2021-09-22","event":"Dapper Labs raises $250 million at a $7.6 billion valuation, led by Coatue, with participation from Andreessen Horowitz, Google GV, Bond, and GIC.","source":""},{"date":"2021-10-20","event":"Dapper Labs begins processing customer withdrawals within 2-10 business days and relinquishes direct control over Flow blockchain.","source":""},{"date":"2022-01-01","event":"NFT market peak passes; total market sales volumes begin steep decline from $6 billion monthly high.","source":""},{"date":"2022-11-03","event":"Dapper Labs lays off approximately 22% of its workforce (~134 employees) citing NFT market collapse and macroeconomic conditions.","source":""},{"date":"2023-02-23","event":"Dapper Labs lays off another 20% of staff. Same day, Judge Victor Marrero denies motion to dismiss in NBA Top Shot securities lawsuit, ruling Moments plausibly meet the Howey test.","source":""},{"date":"2023-07-13","event":"Dapper Labs lays off 51 additional employees (~12% of remaining workforce), marking the third round of cuts.","source":""},{"date":"2023-09-29","event":"SEC quietly closes its investigation into Dapper Labs. No reasons publicly disclosed.","source":""},{"date":"2024-04-11","event":"Fortune reports publicly for the first time that the SEC had investigated and closed a probe into Dapper Labs in September 2023.","source":""},{"date":"2024-06-03","event":"Dapper Labs agrees to $4 million settlement of the NBA Top Shot securities class action. Settlement requires further decentralization steps and staff training on securities law.","source":""},{"date":"2025-12-19","event":"Final approval hearing held for the $7.05 million NBA Top Shot video privacy class-action settlement (Facebook data sharing).","source":""},{"date":"2025-12-27","event":"Flow blockchain suffers a $3.9 million protocol-level exploit. Attacker mints fraudulent WFLOW tokens and bridges assets to Ethereum and Bitcoin. Flow validators halt the network. FLOW token falls over 40%. Upbit and Bithumb suspend FLOW deposits and withdrawals.","source":""},{"date":"2025-12-29","event":"Flow Foundation scraps rollback plan after community and partner backlash; releases revised recovery plan preserving full transaction history.","source":""},{"date":"2026-02-12","event":"Upbit, Bithumb, and Coinone announce plans to delist FLOW token.","source":""},{"date":"2026-03-13","event":"Seoul court dismisses Flow Foundation's emergency injunction to halt delisting; rules foundation failed to prove binding listing contract.","source":""},{"date":"2026-03-16","event":"Upbit, Bithumb, and Coinone delist FLOW token. South Korea accounted for an estimated ~50% of FLOW daily trading volume.","source":""}]},"v":1}