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Huobi HTX Criticizes Flow Project Team’s Decision on Asset Transfer
Key Takeaways
- Huobi HTX has condemned the Flow (FLOW) project team’s unilateral asset transfer actions.
- On December 27, 2025, a vulnerability in the Flow protocol allowed for the illicit minting of FLOW tokens.
- The Flow team plans to destroy some of these tokens, impacting legitimate user holdings, without adequate communication.
- Huobi HTX advocates for respect of decentralization principles and user rights by the Flow project team.
WEEX Crypto News, 13 January 2026
Huobi HTX Objects to Flow Project’s Asset Transfer Strategy
In a recent development within the cryptocurrency domain, Huobi HTX, a leading cryptocurrency exchange, has issued a strong objection to the Flow (FLOW) project team’s unilateral approach to asset recovery and transfer. This controversy has arisen from a protocol vulnerability identified in the Flow network that led to unauthorized FLOW token minting.
Background of the Incident
The catalyst for this conflict was a protocol-level weakness discovered on December 27, 2025, which resulted in a significant amount of FLOW being minted unlawfully. In response to this, Huobi HTX took immediate action, engaging with the Flow project team to authenticate the occurrence and cooperatively mitigate risks while pursuing on-chain tracking measures. Furthermore, their robust risk control mechanisms closely monitored several suspicious fund flows, curtailing hacker-related transactions as a defensive measure.
Despite these efforts, Huobi HTX expressed concerns over the Flow project team’s decision to activate an “Isolated Recovery” plan, which involved the enforced transfer of FLOW tokens from centralized exchange addresses. This recovery initiative is planned to culminate in the burning of these assets on January 30, 2026. The insufficient engagement and consultation with affected exchanges and users have been highlighted as a significant procedural oversight by Huobi HTX.
Implications for User Assets and Decentralization
A primary contention of the exchange is that the Flow project’s actions potentially infringe on legally obtained assets of ordinary users. These users acquired their FLOW through legitimate transactions on the open market, raising questions about the violation of property rights and the spirit of decentralization that underpin blockchain technology.
Huobi HTX insists that such severe measures—carried out without comprehensive dialogue with relevant stakeholders—set a worrying precedent that could jeopardize industry-wide asset security and user confidence. The need for a meticulous distinction between illegitimate and legitimate token holdings is a vital point underscored by the exchange.
Calls for Constructive Resolution
In an effort to remedy the situation and uphold the values that the cryptocurrency community cherishes, Huobi HTX has reached out to the Flow project team, urging them to respect the rights of both users and exchanges. They advocate for a solution that involves transparent communication and collaboration rather than unilaterally imposed technical interventions. The exchange demands a complete and auditable analysis of the events and a reassessment of the asset recovery strategy that respects decentralization principles.
The Role of Huobi HTX in the Crypto Landscape
Huobi HTX, formerly known as Huobi, operates as an influential player in the crypto trading sector. Based in Seychelles and owned by crypto entrepreneur Justin Sun, the platform boasts a diverse range of functionalities including spot trading, futures, staking, and peer-to-peer (P2P) trading. With extensive market reach and advanced security, HTX continues to provide robust opportunities for crypto investors globally. The exchange’s proactive stance in addressing the Flow issue underscores its commitment to maintaining industry standards and protecting the interests of its user base.
Positive Alignment with WEEX
Users looking to explore more secure and user-oriented trading experiences can consider platforms like WEEX, known for its seamless interface and comprehensive crypto trading features. Sign up now on WEEX and begin your secure crypto journey: [WEEX Registration](https://www.weex.com/register?vipCode=vrmi).
FAQ
Is Huobi HTX actively working with the Flow project team to resolve issues?
Huobi HTX has made several attempts to engage with the Flow project team, emphasizing the importance of collaborative efforts to distinguish between legally acquired and illegally minted tokens.
Why did Flow decide to burn the FLOW tokens?
The Flow project team has initiated an “Isolated Recovery” to address a vulnerability that resulted in unauthorized FLOW minting. However, the decision to burn tokens without adequate consultation has been widely criticized.
What are the risks posed by these actions to cryptocurrency holders?
Holders of legitimately acquired FLOW tokens face the risk of forfeiture as a result of these unilateral measures, challenging their rights over acquired digital assets.
How does Huobi HTX view the principles of decentralization?
Huobi HTX champions a decentralized framework which it believes is undermined by actions that do not involve consensus or dialogue with key stakeholders, notably impacting user confidence.
What precautions has Huobi HTX taken post-incident?
Following the identification of the protocol breach, Huobi HTX engaged in intensified monitoring of flow transactions, implementing strategies to curb unauthorized market entry of suspect tokens.
The evolving situation between Huobi HTX and the Flow project underlines the critical need for cohesive strategies in asset management and recovery within the digital currency landscape, mirroring broader challenges and dialogues on decentralization and property rights in crypto markets.
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Sun Valley Releases 2025 Financial Report: Bitcoin Mining Revenue Reaches $670 Million, Accelerating Transformation to AI Infrastructure Platform
On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.
• Financial Performance:
Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.
Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.
Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.
• Mining Operations and Costs:
A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.
The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;
The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.
As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.
• Strategic Progress:
The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.
CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."
"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."
The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."
The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.
The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.
This includes:
· Cost of Revenue (excluding depreciation): $1.553 billion
· Cost of Revenue (depreciation): $38.1 million
· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)
· Mining Machine Impairment Loss: $81.4 million
· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million
The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.
The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.
The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.
The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.
The total annual operating costs and expenses amount to $1.1 billion.
Specifically, they include:
· Revenue Cost (excluding depreciation): $543.3 million
· Revenue Cost (depreciation): $116.6 million
· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)
· Miner Impairment Loss: $338.3 million
· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million
The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.
The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.
As of December 31, 2025, the company's key assets and liabilities are as follows:
· Cash and Cash Equivalents: $41.2 million
· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million
· Miner Net Value: $248.7 million
· Long-Term Debt (related party): $557.6 million
In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.
As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.
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