OKX CEO denies claims of account hacking due to a change in the verification method

Amid discussions of possible OKX security breaches, over $200 million were withdrawn from the platform overnight

11.06.2024 - 08:30

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3 min

What’s new? The head of one of the leading centralized exchanges (CEXs) OKX Star Xu has commented on the fears of the community about a possible security incident. Earlier, experts from the Web 3.0 community Dilation Effect noticed that OKX may switch from a more secure authentication method via Google Authenticator to a less secure one via SMS verification during some transactions.

Source: x.com

What else is known? Dilation Effect notes that for high-risk transactions, such as disabling mobile and Google Authenticator verification and changing passwords and login credentials, the exchange does not activate a 24-hour withdrawal ban, which could prevent asset theft if an account is hacked.

“Possibly to enhance user experience, OKX has made significant compromises in security. Whether this design is good or bad, users will make their own judgments and choices,” the experts concluded.

OKX launches its crypto exchange in Australia for wholesale and retail customers

OKX had previously obtained licenses in Dubai and Singapore and launched a platform in Turkey

Against the backdrop of these discussions, the exchange faced a high daily outflow of funds. Thus, since June 10, users have withdrawn almost $205 million from OKX, which exceeded the total daily outflow from other major exchanges.

After renowned blockchain analyst Colin Wu called on OKX to comment on the study, Star Xu stated that “none of the recent cases of user data loss were related to the switch from Google Authenticator to SMS.”

Source: x.com

He acknowledged that the first method of verification is more reliable, but it also has its flaws. Xu explained that hackers can steal Google Authenticator by injecting a trojan on the victim’s device or hacking into a Google account. As for SMS, for this, hackers can also inject a trojan, or copy the SIM card.

“We have full confidence in the security of our products. OKX will continue to fully compensate the financial losses caused by the exchange itself,” concluded the senior executive.

Earlier, responding to another user’s request for an address book update, Xu noted that OKX’s address book function needs improvement. At that time, he also emphasized that the exchange is responsible for the loss of customer data due to internal problems.

Source: x.com