- Users of crypto exchange OKX are the latest targets in the ongoing trend of attacks on crypto exchanges.
- The exchange has commenced an investigation into the attack on the usersโ accounts.
- A similar cyberattack previously occurred on another exchange.
Lately, malicious actors have increasingly targeted users of crypto exchanges, employing various stealthy tactics to siphon assets from unsuspecting victims. On June 3, 2024, a Chinese Binance user lost a significant amount due to an attack on their account, resulting from an external compromise involving a malicious browser extension.
Less than a week later, another crypto exchange was thrust into the spotlight, with not just one but two users reporting falling victim to hacks.
OKX Users Suffer Hack
On June 9, 2024, the founder of blockchain security firm SlowMist Team reported a hack on two users of crypto exchange OKX, the second-largest exchange by trading volume.
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According to the report, the attack commenced with the bypass of the accounts’ security measures through an SMS breach, when both victims received an SMS risk notification signaling the initial unauthorized access to their accounts.
Upon gaining access, the attackers created new API keys with permissions for withdrawals and trading on both accounts, allowing them to manipulate trades and withdraw funds seamlessly.
While SlowMist initially suspected that the approach indicated an intention for cross-trading, further analysis revealed that the attack was coordinated and executed with precision, suggesting the involvement of a highly organized cybercrime group. The team added that details of both victims and the extent of the attack are protected pending an ongoing investigation to determine the root cause of the attacks.
The recently surfaced reports have prompted a response from the exchange.
OKXโs Response to Security Incident
Speaking to DailyCoin, an OKX spokesperson emphasized that an investigation is ongoing into the reported attack on users’ accounts, stating, “We’re diligently investigating reports that a malicious external actor orchestrated the potential compromise of specific user accounts.”
The spokesperson emphasized that the exchange platform’s security was not affected and reaffirmed its prioritization of users’ security. The exchange’s Chinese arm further stated in a June 9 tweet that the exchange is willing to accept responsibility for the usersโ losses if found negligent in its security measures.
โIf it is ultimately determined that the platform is responsible, the platform will take proactive responsibility,โ the statement read.
The exchange added that the results of the investigation will be provided upon completion, urging users to refrain from unnecessary speculation.
On the Flipside
- In December 2023, OKX suffered a cyber attack resulting in the loss of over $400,000.
- The Chinese Binance investor hack resulted in the loss of $1 million.
- The recurring trend of attacks may prompt regulatory bodies to impose stricter security requirements on cryptocurrency exchanges to protect users.
Why This Matters
The hack on the two OKX users’ accounts represents the latest incident in a wave of attacks against users on crypto exchanges, highlighting the industry’s growing vulnerability to malicious actors. This once again underscores the urgent need for heightened security standards across the industry to combat the trend.
Following the hack on the Chinese Binance userโs account, hereโs Binanceโs analysis and response to the incident:
Binance Denies Responsibility for Chinese Investorโs $1M Hack
Hereโs how these two female-led organizations are promoting gender parity in Web3, read more:
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