OKX Faces Massive Outflows

OKX trading platform has recorded over $633 million in outflows in the last seven days. In the past 24 hours alone, outflows have reached $205 million, bringing the month-to-date numbers to $340 million, according to DefiLlama data. This outflow surge has placed OKX at the forefront of centralized exchanges experiencing significant withdrawals.

Security Concerns

These massive outflows are due to security concerns. Rumors are swirling that OKX's security measures are porous, mainly due to email and SIM authentication vulnerabilities.

Users are growing worried that the verification process can be switched to low-security methods, allowing attackers to bypass Google Authenticator (GA).

Investigations Underway

The platform has acknowledged the issues and announced that the matters are being investigated. OKX has assured its customers that it will take responsibility if investigations prove the fault lies within the platform. The exchange has been transparent about the ongoing probe, aiming to regain user trust.

"Two different victims had their exchange accounts stolen this morning, and the methods and features of their coins being stolen were surprisingly similar," SlowMist executive Cos wrote.

Hacker Tactics Revealed

A report revealed that the victims received an SMS risk notification from "Hong Kong." The attacker then created a new API key with withdrawal and trading permissions, leading investigators to suspect intentions of cross-trading. This method allowed the hacker to gain control of the victim's accounts and siphon off their holdings.

Expert Analysis

Web3 security enthusiasts from Dilation Effect have analyzed the attacks on OKX, examining the platform's user security settings. Their findings were quite surprising. The investigators concluded that OKX's security settings lack a baseline design.

They noted that the platform has made several security compromises to enhance the user experience. Dilation Effect recommends that all users bind their accounts to Google Authenticator for better security.

Assurances from OKX

As investigators probe the attacks on OKX user assets, the exchange has assured customers it will take responsibility and bear the loss if they find the platform at fault.

This promise aims to reassure users and prevent further outflows. OKX's commitment to addressing these security concerns and compensating affected users could be crucial in restoring confidence in the platform.