A user with OKX, the world’s second-biggest cryptocurrency exchange by trading volume, claimed that hackers broke into his account and stole more than $2 million worth of crypto using an AI-generated deepfake video. 

Also read: Crypto Exchange DMM Bitcoin To Repay Users After $300M Hack

OKX reportedly acknowledged a breach of user data but declined to comment further as the matter is now subject to police investigation. The deepfake heist victim, ‘Lai J. Chang,’ gave a detailed account of his ordeal via Chinese blogger Colin Wu, also known as WuBlockchain.

What happened with the OKX AI hack?

According to WuBlockchain, the exchange “followed up as soon as the incident occurred, and has been assisting the relevant parties to deal with it.”

“It is still in the judicial process stage, and the status of the case cannot be announced according to the requirements,” Wu added.

The fraudsters reportedly breached Chang’s Telegram account and stole his personal information. They used the details to impersonate the victim and changed the password of his account.

An AI-generated deepfake was then used to apply for a change of the phone number connected to Chang’s OKX account, as well as the email and Google authentication tool. Within 24 hours, the cybercriminals had emptied more than $2 million in crypto assets from the account. It is not clear which tokens were stolen.

Wu notified OKX, who said they promptly responded and are assisting with investigations. Wu also alerted OKX users through social media to the possibility that many accounts may have been breached.

AI-driven scams see a surge in Asia

Identity verification platform Sumsub reports that deepfake scams in Asia-Pacific rose 1,530% last year, as Vietnam and Japan recorded the most attacks. In Hong Kong, AI-related scams in the fintech industry grew 3.8% in the first quarter.

Also read: Hackers Drain Millions from Binance Accounts Using Chrome Plugins 

In February, a journalist for 404 Media tested a deepfake ID issued by OnlyFake and passed OTX’s verification process. At just $15 for ID, “This technology, which 404 has verified produces fake IDs nearly instantly, could streamline everything from bank fraud to laundering stolen funds.”

A recent Fortune op-ed warns that deepfake scams and other AI-generated cyberattacks will inevitably cause “an unprecedented security nightmare for financial institutions and other businesses.”

Cryptopolitan Reporting by Jeffrey Gogo