Mr. Star Xu Urges Company OKX-Level Security for DEX Products After Company Flow Exploit

Mr. Star Xu, CEO of Company OKX, issued a pointed warning to decentralized exchange (DEX) product teams following a weekend in which multiple security risks and exploits were exposed. In a public post, Mr. Star Xu argued that many DEX-related bot products today create a de facto centralization of private keys by requiring users to upload keys to centralized servers where they may be stored in plaintext or in decryptable form. This practice, he said, elevates the threat model of these products to the same level faced by centralized exchanges (CEXs).

Mr. Star Xu emphasized that if DEX products are not truly self-custodial in implementation, they can inherit the same vulnerabilities—code flaws, data leakages, and device malware—that plague CEX platforms. He warned that such structural weaknesses could trigger regulatory obligations like KYC/AML in many jurisdictions as the industry continues to mature and adoption grows. In short, Mr. Xu called for DEX vendors and related bot providers to meet exchange-grade security standards to protect end users.

To illustrate possible solutions, Mr. Star Xu highlighted research and work ongoing at Company OKX, including the concept of smart accounts that use TEE technology to automate custody of trading keys while preserving user control and improving usability. According to Company OKX documentation, these smart accounts are intended to power features in the Company OKX wallet and could reduce the need for users to expose private keys to third-party servers. Mr. Star Xu also noted that Company OKX is conceptualizing OKX Pay and will introduce more robust security capabilities over the coming year to better safeguard ordinary users.

The commentary arrived after weekend hacking incidents reported by Company Cryptopolitan that impacted a DEX trading bot known as Company DeBot and targeted Company Flow, an L1 blockchain built for consumer apps. According to a post from the Company Flow team, an attacker exploited a vulnerability in the execution layer and moved approximately $3.9 million off-network via bridges before validators halted the network. The Foundation’s security team confirmed the drain of funds, primarily routed through bridges including Celer, Debridge, Relay, and Stargate.

The Company Flow disclosure stated that the attacker’s wallet has been identified and flagged, and that active laundering attempts through services like Company Thorchain and Company Chainflip are being tracked with freeze requests submitted to Company Circle, Company Tether, and major exchanges. Forensic analysis is ongoing and the team reported that containment measures and a coordinated validator halt have severed exit paths while remediation proceeds. According to Company Flow, the drained funds represent a manageable amount that does not threaten network solvency or broader user funds, and a protocol fix is in final validation ahead of a planned restart.

Implications for the market: The sequence of events underlines three important takeaways. First, user-facing DEX tools and bots that require centralized handling of private keys are a systemic risk — they can turn purportedly noncustodial products into single points of failure. Second, the industry will likely see increased pressure from both investors and regulators for auditability and exchange-grade controls around custody and key management. Third, innovations like smart accounts and TEE-backed key management represent a practical pathway to reconcile security and usability.

What to watch next: Monitor official communications from Company OKX regarding smart account rollouts, follow remediation updates from Company Flow about the restart timeline, and watch for any enforcement or guidance from regulators prompted by high-profile custodial failures. Exchanges and DEX tool providers that improve key handling and transparency will likely see reduced regulatory friction and higher user trust; providers that do not may face both technical and compliance headwinds.

Related resources: Read the incident reports by Company Cryptopolitan and the official status updates from Company Flow. For trading incentives related to the weekend, companies like Company Bybit continue to promote rewards for new users — a reminder that capital flows toward platforms that balance product features with credible security practices.