Flow cryptocurrency holders who purchased tokens in late December 2025 could be eligible to participate in new investor actions investigating potential securities fraud by the Flow Foundation. Two major law firms—Rosen Law Firm and Schall Law Firm—have announced separate investigations into whether Flow Foundation issued materially misleading business information to investors, potentially triggered by a security incident that occurred in late December 2025.
If you held Flow tokens during the specified window and purchased before December 27, 2025 while holding through December 29, 2025, you may have legal rights to pursue compensation at no upfront cost. We also examine the historical precedent from the Dapper Labs settlement to understand what outcomes may be possible, and explain the current status of these investigations.
Table of Contents
- Who Qualifies for the Flow Cryptocurrency Investor Action?
- What Are the Alleged Securities Violations?
- Historical Precedent—Dapper Labs Settlement
- No Upfront Costs—How the Contingency Fee Model Works
- What This Doesn’t Guarantee—Important Limitations
- Ongoing Status and Timeline Expectations
- What Eligible Investors Should Do Now
Who Qualifies for the Flow Cryptocurrency Investor Action?
The eligibility criteria for the current flow investor investigations are narrowly defined based on timing. To potentially qualify, you must have purchased Flow cryptocurrency on or before December 27, 2025, and continuously held it through December 29, 2025. This specific window is tied to the security incident and related business disclosures that prompted the investigations. Investors who bought Flow before the December 27 cutoff but sold before December 29 would not meet the eligibility requirements.
However, if you meet the purchase and holding window, you don’t need to have suffered a specific percentage loss or reached a minimum investment threshold to qualify. The law firms are investigating on behalf of all investors during that period, regardless of how much Flow they owned or how their holdings have performed since then. This is different from some securities actions where only investors who purchased at certain price points qualify. For example, an investor who bought 100 Flow tokens on December 15, 2025, and held them through December 29 could potentially join the action even if they sold immediately after—as long as they held through the December 29 date.
What Are the Alleged Securities Violations?
Both Rosen Law Firm and Schall Law Firm are investigating whether the Flow Foundation issued false or misleading statements to investors about the company’s business, operations, or financial condition. The investigations were triggered by a security incident that occurred in late December 2025. The law firms are examining whether the Foundation disclosed adequate information about this security event and its potential impact on investors’ holdings before or immediately after the incident occurred.
The specific nature of the security incident and the alleged misstatements have not been fully detailed in public filings, but the timing suggests investors may have been harmed if they relied on incomplete or inaccurate information when deciding to buy or hold Flow. However, proving securities fraud requires demonstrating that the Foundation made false statements with knowledge of their falsity (or extreme recklessness), that investors relied on those statements, and that they suffered losses as a result. The investigations are currently determining whether sufficient evidence exists to meet these legal standards before any formal lawsuit is filed.
Historical Precedent—Dapper Labs Settlement
Flow investors have a historical reference point in the 2024 Dapper Labs settlement. Dapper Labs, the company behind the Flow blockchain, agreed to a $4 million aggregate settlement fund in a class action lawsuit alleging that NBA Top Shot Moments were unregistered securities. That settlement established that Flow-related products can be treated as securities under U.S. law, which strengthens the legal foundation for the current investigations into Flow Foundation’s disclosure practices.
The Dapper Labs settlement is significant because it shows that courts have already determined Flow-related digital assets can constitute securities offerings. This precedent does not guarantee the current investigation will succeed, but it demonstrates that claims involving Flow and the Flow ecosystem have legal merit. The $4 million Dapper Labs fund was divided among eligible class members, meaning individual payouts depended on the total number of participants in the settlement. The current Flow Foundation investigation is separate and not yet settled, so no payout timeline or fund size is currently known.
No Upfront Costs—How the Contingency Fee Model Works
All of the law firms investigating these Flow claims are working on a contingency fee basis. This means you pay nothing out of pocket—no filing fees, no attorney’s fees upfront, and no costs to join the investigation. The law firms only get paid if they recover compensation for investors, and their fees come from the settlement or judgment amount rather than from your pocket. This contingency structure removes a major barrier to pursuing claims.
Unlike hiring a lawyer to defend you in court where you might pay hourly rates or flat fees regardless of outcome, contingency representation means the law firm’s financial incentive is aligned with yours—they only profit if investors recover money. The tradeoff is that the law firm will typically take a percentage of any recovery (often 25-33%) as their fee, plus reimbursement for litigation costs. However, this still leaves a substantial portion for eligible investors. When evaluating whether to join, you’re risking no money, only your time in providing documentation.
What This Doesn’t Guarantee—Important Limitations
It’s critical to understand that being eligible for these investigations does not mean you are guaranteed to recover money. These are investigations, not yet filed lawsuits, and no settlement has been reached. The law firms are determining whether sufficient evidence exists to bring a case; if they conclude the facts don’t support a securities claim, the investigation could conclude without litigation. Even if a lawsuit is filed, there is no certainty of winning—defendants (the Flow Foundation) will dispute the allegations.
Also, even if the law firms succeed in obtaining a settlement, the total fund is divided among all eligible class members. Using the Dapper Labs precedent, a $4 million fund split among tens of thousands of Flow holders resulted in per-person payouts that were modest for smaller investors. Your actual recovery, if any, depends on the settlement size and the number of participants. This is why it’s important to understand that joining an investor action is not a guaranteed path to compensation—it’s an opportunity with no upfront cost to pursue compensation if the legal case succeeds.
Ongoing Status and Timeline Expectations
As of March 2026, both the Rosen Law Firm and Schall Law Firm investigations are in the early phases. Neither investigation has yet resulted in a formal lawsuit being filed, and no settlement negotiations have begun.
This timeline is typical for securities investigations—law firms gather evidence, analyze documents, interview investors, and conduct preliminary legal analysis before deciding whether to file a formal complaint. The typical timeline from investigation announcement to settlement in securities litigation ranges from 18 to 36 months, though cases can move faster or slower depending on complexity, court schedules, and settlement negotiations. The Flow Foundation investigation is unlikely to be resolved quickly, so if you are eligible, you should expect this process to unfold over multiple years before any compensation decisions are made.
What Eligible Investors Should Do Now
If you meet the eligibility criteria—purchasing Flow on or before December 27, 2025, and holding through December 29, 2025—the next step is to contact one of the investigating law firms to register your interest. Both Rosen Law Firm and Schall Law Firm have announced the investigations publicly and are accepting inquiries from potential class members. When you reach out, be prepared to document your Flow purchases and holdings during the specified window, including transaction records, exchange statements, or wallet addresses that show your ownership.
Registering early gives you an opportunity to provide information that may support the investigation while protecting your rights in the potential case. However, this step does not commit you to anything legally—you can register now and decide later whether to participate in any settlement that may be reached. By registering, you ensure you won’t miss future deadlines if the law firms do file a lawsuit.