- 1 OKX, a global cryptocurrency spot and derivatives exchange, recorded an outflow of $630 Million in the past 7 days.
- 2 The recent rumors of security issues resulted in an outflow of $2.4 Million in the past 24 hours.
- 3 Major shortcomings in security settings were reported on the OKX crypto exchange.
On June 11, OKX, one of the biggest cryptocurrency exchanges, witnessed an outflow of $2.4 Million in the past 24 hours amid security issue rumors. The exchange recently suffered a significant security breach using an SMS notification system.
What’s Going on With OKX?
On June 9, OKX witnessed a security breach that allowed attackers to create new API keys to withdraw amounts. The news raised concerns about security on OKX.
In response, an outflow of $2.4 Million in one day and $630 Million in the past 7 days were documented. Within one month, the exchange registered an outflow of $355.96 Million.
Perhaps affected by recent rumors of security incidents, OKX has seen significant outflows. Defillama shows that OKX has seen an outflow of $204m in the past 24h and $630m in the past 7d, exceeding the total outflows of other exchanges. Binance has seen a net inflow of $1.364… pic.twitter.com/d3G4mycovv
— Wu Blockchain (@WuBlockchain) June 11, 2024
The scenario highlights the withdrawal of digital assets from the crypto exchange and a decline in user trust in the network. It also implies that investors and traders are moving to other platforms.
As per DefiLlama data, Binance and Gate.io are performing better than OKX crypto exchange. In the past 7 days, Binance witnessed an inflow of $11.36 Billion and $407.57 Million in a month.
Gate.io, a centralized crypto exchange (CEX), documented an inflow of $50.83 Million in 7 days and over $68.87 Million in a month.
Key Shortcomings in Security System
One of the biggest reasons behind the outflow was serious security flaws in OKX’s system, which holds the potential to avoid Google Authenticator Verification. The hackers somehow managed to breach OKX security through an SMS notification system.
By exploiting the vulnerability, attackers created a new API key to withdraw and trade the assets, which resulted in a major theft. The theft affected two OKX account holders, as neither had activated Google Authenticator.
The exchange is conducting a detailed investigation of the case, ensuring the victims for immediate issue resolution. Moreover, the exchange advised users to activate two-factor authentication (2FA) and be aware of such breaches.
OKX Global Expansion
The security shortcomings somehow raise concerns among users and industry observers, but OKX is doing its best to maintain a recognized and trustworthy position within the industry.
At the beginning of June, the exchange announced its plan for expansion in the Netherlands. The exchange is preparing to offer trading services, a wide range of cryptocurrencies, trading pairs, and Web3 wallets worldwide.
We're launching our crypto exchange services and Web3 Wallet in the Netherlands
— OKX (@okx) June 3, 2024
✔ Spot trading & convert services
✔ +150 cryptocurrencies
✔ +60 crypto-Euro pairs@EraldOnChain explains why this is a crucial step within the local community: https://t.co/ggJWvhRCJn pic.twitter.com/TciKvUg2Nb
To be precise, OKX will offer over 150+ cryptocurrencies and 60 trading pairs with Euro. In the same way, the exchange expanded its roots in Argentina by launching a wide range of services. These services include managing Decentralized Finance (DeFi), trading crypto and NFTs, staking, and using decentralized applications (dApps).
In 2023, OKX opened services like staking rewards and DeFi integrations for investors and traders in Brazil.
Disclaimer
The analysis given above is for informational and educational purposes only. You should not take it as financial, investment, or other advice. Investing in or trading crypto assets is risky. Please consider your circumstances and risk profile before making any investment decisions.
