OKX Hacked for Over $400,000: Should You Be Worried?

Recent cryptocurrency theft at OKX DEX has prompted concerns over security practices, how have your funds been affected?

OKX cyberpunk character concerned his city is in a glitch.
Created by Kornelija Poderskytė from DailyCoin
  • A breach at OKX has prompted questions about the security of decentralized exchange platforms.
  • An unauthorized token transfer has revealed potential risks within market maker contracts.
  • The exchange has promised to compensate affected users and has deactivated the compromised contracts.

Over $400,000 of cryptocurrency was stolen from OKX DEX, a decentralized exchange aggregator platform, in a significant breach. Is this breach something that all users must worry about, or is it an isolated incident caused by specific human error?

Thousands of Dollars Drained Without Authorization

The exploit, attributed to a compromise of the management rights of a market maker contract, enabled the attacker to transfer tokens without user authorization. OKX DEX, a popular centralized exchange OKX (OKB) product, aggregates trading prices from various integrated third-party DEXes and presents users with the best available deal.

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When users wish to send tokens, they must approve a TokenApprove contract, granting the receiver permission to claim the funds. This is followed by triggering the claimTokens function of the contract, completing the transfer.

However, in the late hours of December 12, a contract manager maliciously altered its functionality. This modification, likely stemming from the leak of the account’s private keys, bypassed the authorization process. As a result, the attacker could directly execute the claimTokens function without user consent, draining thousands of dollars from affected wallets. 

OKX Assures Compensation After Exploit

SlowMist, a blockchain security firm, flagged the suspected attacker’s address and the address where the stolen funds were being laundered. OKX acknowledged the exploit and linked it to an abandoned DEX contract that was no longer in use. 

However, the exchange stated that the affected contracts had been deactivated and assured affected users of compensation. The remaining user assets, according to OKX, remain secure. OKX pledged to conduct a security review of abandoned smart contracts to prevent future occurrences.

On the Flipside

  • This vulnerability was introduced due to a flaw in an abandoned DEX contract that was no longer in use. 
  • Not all users need to worry about their assets being stolen, and the breach should not deter people from using the exchange.
  • OKX has taken steps to address the issue and prevent similar incidents in the future.

Why This Matters

Hacks and scams within the cryptocurrency industry are critical reminders that vulnerabilities persist, highlighting the ongoing quest for a flawless system. While you may not have been directly impacted this time, these incidents underscore the potential risks users face.

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To learn more about a recent hack impacting Justin Sun’s HTX Exchange and its $258 million outflow, read here:
Justin Sun’s HTX Exchange Faces $258M Outflow After Hack

To discover further details about the $47 million in hostage following a hack on KyberSwap, along with the hacker’s latest demands, read here:
KyberSwap’s $47M Remains Hostage, Hacker Shares New Demands

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
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.