Is OKX Safe? (2025 Update)

What is OKX?

OKX is a Seychelles-based cryptocurrency exchange founded in 2017. The platform serves over 50 million users globally and supports more than 350 cryptocurrencies. OKX is known for its advanced trading features, low fees, and derivatives exchange. 

What security features does OKX have?

Let's walk through some of OKX's security features:

• Cold storage: OKX stores the majority of user funds offline in cold storage, which protects cryptocurrency from online attacks.
• Two-factor authentication (2FA): Users can enable SMS, email, or Google Authenticator for account protection. OKX also has support for physical security keys. 
• Proof of Reserves: OKX publishes monthly third-party audits by Hacken confirming that reserves exceed 100% of user liabilities. 
• Security certifications: The cybersecurity firm CertiK rates OKX with an "AA" score, the highest security rating possible. 

Has OKX ever been hacked?

No, OKX has never experienced a major hack or security breach throughout its operational history. The platform has maintained a clean security record with no major public breaches reported, which is notable for an exchange of its size. 

Is OKX FDIC insured?

Crypto on OKX is not FDIC insured. Generally, cryptocurrency is not subject to FDIC protection.

What legal and regulatory issues has OKX faced?

OKX has faced regulatory challenges in recent years. In February 2025, OKX settled with U.S. authorities over compliance failures for more than $500 million, one of the biggest settlements on record for a crypto exchange. 

In March 2025, OKX suspended its DeFi service after drawing scrutiny from European regulators. It was alleged that OKX’s DeFi service was used to launder proceeds from a $1.5 billion hack on the trading platform Bybit. OKX has denied these allegations. 

Is OKX legal in the U.S.?

No. OKX is not available to U.S. residents and territories due to regulatory restrictions.

Why should I use OKX?

OKX may be a good choice if you're a non-US investor looking for low fees and advanced trading features. However, it’s important to be aware of the exchange’s regulatory issues. 

What are the risks of using OKX?

Keep in mind the following risks when using OKX: 

• Custodial risk: Like all centralized exchanges, crypto held on OKX could be lost if the platform faces a hack or bankruptcy. 
• Regulatory uncertainty: OKX faces ongoing legal challenges and regulatory scrutiny in multiple jurisdictions. 
• Account-level threats: It’s important to be wary of hack attempts for all of your cryptocurrency accounts, including phishing attacks and malware. 

We recommend enabling two-factor authentication and moving long-term crypto holdings to a hardware wallet for increased security.

Does OKX report to tax authorities?

Starting in 2023, OKX requires Know Your Customer (KYC) verification to access most core features, including trading and depositing cryptocurrency. It's likely that OKX shares this information with relevant tax authorities upon request.

Remember. you're required to report all crypto income and capital gains on your tax return. Crypto tax software like CoinLedger can automatically track your OKX trades and generate tax forms in minutes.

Conclusion

OKX offers strong security features like cold storage, two-factor authentication, and monthly Proof of Reserves audits. The platform has never been hacked and holds a top security rating. While OKX faces regulatory challenges, it remains a popular option for international traders.