OKX Exchange Targets Resolution Post Hack on Users’ Accounts

The exchange emphasized that the impacted users will be satisfactorily resolved.

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  • Two users of crypto exchange OKX recently lost assets to a coordinated cyberattack.
  • The exchange has reportedly compensated the users.
  • OKX will implement strengthened security measures to ensure investor protection.

Hacks and scams in the crypto industry remain a persistent concern, resulting in significant losses for both investors and organizations alike. Most recently, two users of the crypto exchange OKX experienced the harsh impact of these malicious actors, losing substantial assets to a coordinated cyber attack.

However, in a stroke of luck, the victims may find some relief as the exchange focuses on resolution.

OKX to “Satisfactorily Resolve” Impacted Users 

According to a June 12, 2024 statement made by the exchange’s Chinese arm, all impacted users in the June 9 hack “have been/will be satisfactorily resolved immediately.” The update follows the exchange’s assertion post-incident that an investigation was underway, aimed at determining the root cause of the attack and ensure proactive responsibility. 

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The exchange disclosed some of its findings, including that an authorized individual had forged judicial documents to illicitly obtain client information, thereby facilitating the orchestration of the attacks.

“It has been verified that someone forged judicial documents and obtained the information of a very few customers. The matter is under investigation by the judicial authorities, and we cannot disclose more specific details,” the statement read.

While reports of the hack highlighted OKX’s lack of enhanced security measures, such as Google Authenticator, OKXChinese emphasized that the hack was not related to these concerns. They stated, “This incident has nothing to do with the choice of Google Authenticator or SMS verification, but OKX does recommend that users who are able to use Google Authenticator.

DailyCoin reached out to OKX to verify details of the compensation but has yet to receive a response. The exchange, however, stated that it is strengthening security measures, such as introducing a verification mechanism and bolstering the security level of its AI face recognition. It also urged users to adopt extra layers of protection to avoid similar incidents.

What was the OKX Hack?

On June 9, 2023, two of the exchange’s users reported significant asset loss due to a security breach. 

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While the details of the funds lost and extend of the breach remained undisclosed, the details revealed stated that the attack occurred by bypassing the accounts’ security measures through an SMS breach, which allowed the malicious actors permissions for withdrawals and trading on both accounts.

Analysis of the incident also revealed that the attack was coordinated and executed with precision, suggesting the involvement of a highly organized cybercrime group.

However, an OKX spokesperson told DailyCoin that the exchange’s platform security was not impacted, reaffirming its prioritization of users’ security. 

On the Flipside

Why This Matters

OKX’s dedication to resolving issues for the victims demonstrates its commitment to investor protection. However, the necessity for these efforts highlights vulnerabilities in security measures, underscoring the need for better practices across on the exchange and across the broader industry.

Read this article to learn more about the impact of the controversy on OKX so far:
OKX Exchange Loses Millions After User Accounts Hacked

The ongoing market tumble has breathed life into a long-inactive Bitcoin whale, read more about their resurgence:
5-Year Dormant Bitcoin Whale Resurfaces with $535M Transfer 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.