The outflow of Crypto funds from the OKX crypto exchange surged rapidly in the last 7 days, as many people claimed the OKX exchange faced some kind of critical security issues.
OKX is an averagely popular crypto exchange. This crypto exchange was founded in 2017 by Star Xu and operated by OK Group. It offers spot trading, futures trading, margin trading, and other services. Known for its security and user-friendly interface, OKX is popular among cryptocurrency traders globally.
Last week reportedly two OKX crypto exchange users faced a similar swap attack & lost a significant amount of money from their OKX accounts. Reports noted that hackers used Artificial intelligence (AI) tools to create fake videos of victims to easily bypass the security of the exchange.
2 days ago, the founder of SlowMist, Yu Xian, shared information on this matter and said that a sophisticated SMS attack led to the theft. Attackers sent fake notifications from Hong Kong, prompting victims to create new API keys with withdrawal and trading permissions. Xian suggested that both incidents may have been orchestrated by the same group. Initially, suspected cross-trading intentions in the OKX SIM swap hack have been ruled out.
This news overall created a huge level of panic among the OKX customers. In the last 7 days, OKX saw a net outflow of $630 million worth of cryptocurrencies from the platform.
In the last 24 hours, OKX users withdrew $204 million.
It is worth it to note that the Binance crypto exchange saw a significant inflow of money in the same period. Binance has seen a net inflow of $1.364 billion in the past 7 days. Maybe OKX users shifted their money from OKX to Binance.
Here people need to understand that the hacking incident was not because of any problem with OKX’s security system, instead it was the customer’s fault.
In response to such mistakes, OKX team shared a detailed guide to remain away from such incidents.
Read also: Charles Hoskinson calls Solana a “decentralisation theatre” ( Solana validators controversy)
