OKX Faces Major Security Breach with $204M Crypto Outflow, Binance Records Inflows: Report

• Global cryptocurrency exchange OKX is currently experiencing significant outflows amidst rumors of a security breach, as reported by decentralized finance (DeFi) data aggregator DefiLlama.
• Recent data indicates that approximately $204.67 million in crypto assets has left the exchange over the past 24 hours.
• A noteworthy insight reveals that over the past week, OKX has seen outflows totaling $633.88 million, while Binance, the largest crypto exchange by volume, recorded inflows of $128.51 million in the last 24 hours and $1.364 billion over the past week.

OKX experiences substantial outflows amid security breach reports.

Massive Crypto Outflows at OKX

Global cryptocurrency exchange OKX is witnessing a significant outflow of funds amid emerging reports of a security breach. Decentralized finance data aggregator DefiLlama reports that approximately $204.67 million in crypto assets exited OKX over the past 24 hours, raising concerns among the exchange’s users and stakeholders.

Seven-Day Outflow Trends and Binance Inflows

Analyzing the data over the past seven days, OKX has recorded a staggering $633.88 million in outflows. In stark contrast, Binance has shown resilience, recording inflows of $128.51 million in a 24-hour period and a substantial $1.364 billion over the past seven days, according to data provided by DefiLlama. These contrasting figures highlight the varying levels of trust and security measures perceived by users of these exchanges.

Details of the OKX Security Breach

According to blockchain security firm SlowMist, the breach at OKX was executed through SIM hijacking. This fraudulent technique involves attackers manipulating a mobile carrier to transfer the target’s phone number to their own device, thereby intercepting calls or text messages required for two-factor authentication (2FA) on online accounts. Specifically, hackers managed to create new API keys with trading and withdrawal permissions.

Community Feedback and Security Concerns

Notably, Asia-focused journalist Colin Wu reported that two OKX accounts were compromised due to the use of SMS or email verification instead of the more secure Google Authenticator for 2FA. This security lapse has drawn criticism from the community, with many pointing out the exchange’s lax security measures. Feedback on OKX’s social media platforms suggests that the mandatory use of Google Authenticator is relatively uncommon, increasing the exposure to potential theft.

Conclusion

The recent massive outflow of funds from OKX highlights the paramount importance of robust security measures in the crypto ecosystem. While Binance continues to gain users’ trust with substantial inflows, OKX faces increased scrutiny and needs to address its security protocols to prevent future incidents. Investors must exercise due diligence and consider security measures when choosing an exchange for their crypto transactions.