OKX User Loses $2M In Deepfake Cyber Attack

Key Points:

• OKX user lost $2 million in a deepfake attack.
• Cybercriminals used AI to bypass security.

OKX User Loses $2 million due to a deepfake attack. Fraudsters used AI to bypass security, leading to a major crypto theft.

On June 3, 2024, a sensational incident took place in the cryptocurrency world, which was a wake-up call for cyber-security. A user of OKX, one of the topmost crypto exchanges, reported that fraudsters had misused deepfake technology to steal over $2 million from his account.

OKX User Loses Over $2 Million to Deepfake Attack

Lai Japanese Fang Chang is a well-known community member who disclosed the fact that these cybercriminals had bought all his personal details.

Then they employed artificial intelligence to synthesize an impersonated video to change the email account details and the phone number and further bypass two-factor authentication.

Wu Blockchain, the one to report this incident, was now calling all crypto exchanges to stay alert from such new coin theft methods. It reminded users of these personal data leaks.

Cryptocurrency Exchanges Warned of New Theft Methods

OKX has also confirmed the terrifying report of user account theft. The platform is actively aiding the relevant parties in addressing the situation, which is now in the process of a judicial procedure. More details of the process must remain confidential.

This deepfake attack is another challenge on the list for OKX in the year 2024. On March 27, the exchange’s API encountered an unexpected issue, and that caused sudden panic, as account balances seemed to be chaotic.

Readmore: OKX API Incident Suddenly Occurs, Causing Serious Loss To Users

OKX Struggles with Reputation Recovery and Security Challenges

According to reports, the accounts of some users showed zero balance, while others were even showing account balance amounts in the tens of millions of dollars. Additionally, many traders in Singapore, the United Kingdom, and Japan were facing huge losses due to missing position data.

OKX continues to work on recovering its reputation and security. However, it has withdrawn its application to provide digital asset services in Hong Kong, as announced on May 24, 2024.