OKX Says Crypto Inflows to Centralized Exchanges Hit Record After Coldcard Exploit

Inflows of digital assets into centralized exchanges have surged since the exploitation of a vulnerability in the Coldcard Bitcoin hardware wallet, according to an analysis.

The Block reported on August 4 that Jonathan Brockmeier, OKX's chief compliance officer, said inflows to centralized exchanges had reached a record high after the Coldcard incident. During the FTX collapse, users moved assets into self-custody. This time, the trend has reversed, he added.

The Coldcard vulnerability was disclosed last week. Galaxy Research said the flaw resulted in the theft of more than 1,300 Bitcoin worth $80 million through repeated incidents across thousands of addresses.

Brockmeier also highlighted the limits of self-custody. Users are effectively required to become their own security experts, he said. While OKX supports customers who want that approach, it also offers what he called a safer alternative through a dedicated global team that uses artificial intelligence to detect suspicious activity before funds are moved.

OKX said it prevented $26.3 million in fraud losses in the first half by blocking suspicious transactions. The company uses AI to identify signs of fraud, including device compromises and social engineering, before transfers are completed.

According to crypto security firm Blockaid, hacking losses suffered by crypto projects topped $1 billion in the first half, while the number of confirmed exploits reached a record high.