What’s Wrong With OKX? Users Pull $200M After Alleged Security Breach

The third-largest crypto exchange by trading volume, OKX, has seen a significant outflow over concerns about the security and integrity of its platform. On-chain data shows users have pulled over $200 million in the past 24 hours and $800 million in the past seven days.

OKX has been in the news recently for the wrong reasons, with users reporting multiple instances of security breaches and fund siphoning. These rumors are allegedly the reason users are dumping the exchange.

OKX Users Report Multiple Security Breaches

On June 3, an OKX user reported that his account had been hacked for $2 million. In a long piece, the user stated that the exploiters bought his personal details on Telegram and used them to create an AI-generated deep fake video of him.

The user, Fang Chang, stated that the hackers logged into his email and changed his password. He further noted that the exploiters applied to change his phone number, email, and even his Google Authenticator through the deep fake video.

Amidst the backlash over the exploit, OKX had another security breach days later. On June 9, a report made the rounds that two OKX users were exploited using the SIM swap technique.

According to SlowMist founder Yu Xian, the SMS risk notification came from Hong Kong, and the hacker created a new AP key with permission to launder the user’s funds. Notably, the two exploits were done similarly, and the only security flaw found was the users’ lack of 2FA in their accounts.

Amidst the uncertainty around OKX, the exchange has made an official statement stating it is aware of the rumors and is investigating the situation.

“We attach great importance to the ‘exchange user assets stolen’ situation reported online today. We have contacted the relevant users and are currently investigating the relevant situation. If it is finally determined that the platform is responsible, the platform will take the initiative to bear it,” OKX stated on X.

Binance Major Beneficiary

The leading exchange, Binance, has been the major beneficiary of the OKX outflows. In the past 24 hours, the exchange has seen an inflow of $128.5 million, and about $1.36 billion has also flowed into Binance in the past seven days.

Binance recently celebrated hitting 200 million users globally, a milestone that sees it control almost 36% of the total user base in the crypto sector.