OKEx sounds caution to customers; crypto-exchange claims trick projects impersonate it

With cases like Cryptopia, QuadrigaCX and the recent Bitfinex fiasco denting the public’s trust in cryptocurrency exchanges, some exchanges are looking to fortify security. One among these is the Malta-based OKEx.

In a May 3 tweet, the exchange sounded a stark caution to customers that several “frauds” will look to “impersonate OKEx”. The tweet added that these projects would aim to trick unsuspecting users to send their funds to “fake wallet addresses”.

The exchange added that scheme would be even more prevalent given the OK Jumpstart project implemented by the exchange back in April 2019. OK Jumpstart is the exchange’s token sale platform which allows cryptocurrency and blockchain related projects to build their base, gain access to a liquid market, and expand their operations.

OKEs’s tweet, in full, read:

“Beware of frauds that are trying to impersonate OKEx to trick project teams to send funds into fake wallet addresses for applying to OK Jumpstart.

Please note that we never ask teams to send fees into a wallet address.”

Andy Cheung, the head of operations at OKEx added, via Twitter, that if customers doubt the motives of a project, they should “check” with him before divulging their assets.

Several exchanges are stepping up their security protocol in light of the recent attack on a number of exchanges. Bithumb, Cryptopia, and DragonEX are only a few exchanges that suffered a major external hack in this year alone.

Despite the exchange setbacks and the warning issued to customers, OKEx has seen daily transaction volume growing substantially. According to CryptoCompare’s exchange review for March 2019, OKEx was the only exchange, in the crypto-to-crypto category to record over $1 billion in average daily transaction volume and posted a monthly volume of $31 billion.

Furthermore, the warning comes at a coincidental time for the exchange realm as several reports have emerged suggesting trade volumes touted by exchanges are highly misleading, with OKEx being a major culprit. A report from The Tie suggested that only 5.94 percent of the exchange’s expected volume matched their reported volume.

A Bitwise Asset Management report, published for the SEC in March 2019, claimed only ten exchanges report “real” volume, OKEx was not included in the ten.

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